Again, unless you know someone who wants to unload real estate at a fraction of its worth, you're going to need to get money to get boots on the ground.Frankly, I started as a landlord because I wanted to.

first position is always best... and fractionalized mortgage interest or DOT interest are legal in many states.. in many states like Oregon for example its not legal to have multiple beneficiaries.. without doing a real estate paper offering ( mini PPM).. 

You are asserting that the increases in expenses will be borne by the tenant rather than by the owner in the form of an increased cap rate.Expenses here are a fraction of what they are in other places.

from the documents a few BP folks sent to me a few years ago. it looked like they were investing in multi beneficiary mortgages IE multiple investors in a fractionalized mortgage.. which can be argued is a security .. in CA they are quite common but you have a specific disclosure document that must be filled out by a real estate broker .. it lets you know who the co investors are.. which is really the rub here.. none of these folks know each other.. and of course this is always the rub in a pooled syndicated investment that goes south.. 

Because this deposit typically transfers over to the new tenant's security deposit, should I be charging an amount equal to the security deposit or only a fraction of that amount?

The odds of you finding the scarce lender that has some amazing program others do not in the market is very small.It happens occasionally but only a small fraction of the time.

Researching online it seems like it is a toss up if the basement can be counted in an appraisal, and sometimes only at a fraction of the above grade value.Should I:1.

By the way, the lend fractionally which means they don’t lend out the same amount they take in, they lend out many times more than they actually have.

You could find a place like a credit union or a call center that pays you hourly with a small commission, but they're making fractions of what higher performing commissioned LO's are making. 

Besides the origination fee it sounds pretty accurate, You maybe able to save a fraction of a point here or there but you will most likely land around the same numbersI am also assuming the add on's land you around 8.5% Were there any buy downs offered?