With the help of the SE who looked at the place, I gave myself a hard number that I was in or out on.

@Jay Hinrichs, yep I agree, a guaranteed payment (ordinary income) subject to SE tax.I should have been more clear in my original post.

@Jie Li  there is no turn key per se in the Portland market.. you really don't need that. you just need a good RE broker.. the rentals will already be preforming.. this is not like the mid west were there are thousands of properties that are vacant for whatever reason and need total rehabs.... you would just plug into an existing duplex or 4 plex and off you go. returns are 6 to 8%...

I also like the Derby and SE area of Wichita.

So there's something else at play herehttps://www.auction.com/details/6735-se-flavel-st-portland-or-97206-2154797-e_7056h/

Better - find off market homes to buy: let me know if i can se you up with someone that can help you with that in the city you are investing in! 

I work with investors in SE Michigan, covering areas such as Novi, Fenton, Hartland, Highland, AA, Whitmore Lake and Livonia.

I am just starting out, so don't really have a history of success per se, but will definitely work on building it and the relationship with a bank...And thanks for the other ideas - I've been mostly looking at REOs in my area, so hadn't really looked at other options...

The other side of the coin is that you pay a $50,000 fee to person B and it will be non-SE other income and taxed at the ordinary rate.

Hi, anyone new to RE investing from SE Pa????????????????