Are they part of the pref equity position?

There are a few programs that can do second position financing but typically underwritten based on your personal income.

I am looking for neighborhoods with positive appreciation and cash flow.

So I saved an additional $2500 in taxes after the fact.

Your best route might be to buy a 2 to 4 unit property that you can live in and rent out the additional apartments.

The duplex is cash flow positive, but not by much.

In addition to the interest of the loan, you'd also be paying this as well. 

These properties are generally in high demand, but on a positive there will be drastically less new inventory of competing rental properties. 

You may also need to provide additional documentation, such as proof of income and employment, and may need to have a co-signer who is a U.S. citizen or permanent resident.In terms of buying with an LLC, it can be a good option for some foreign buyers, as it can provide additional liability protection and potentially offer tax benefits.

Quote from @Chris Seveney: @Brian Burke I am also curious what the investor equity position is.