I grew up in SE Michigan, about 20 min from Toledo, so the NW Ohio area's pretty familiar to me.

My partner and I have a property in SE Portland that is in the final stages of development for a duplex.We purchased the property with the intention of rehabbing the home on the front end of the lot and then partitioning two additional lots behind the home that will be accessed from a dead-end street and not requiring a flag lot.

First thank you all for the comments.I have owned a few 2-3 families in the north east and the numbers are pretty close to actuals (3-4 years of actual expenses).All of the se properties are in lower income neighborhood (that may make a difference).I cannot see having 50% of gross rent expense + 10% vacancy, Or maybe for much nice/prime location. 

You may also want to check out a membership with AASEW (Apartment Association of SE WI). 

Maybe I’ll se you there.

@Kenny RainsYou may want to look at the publication below.https://www.irs.gov/businesses/small-businesses-se...You and your wife(joint owners of an LLC) may elect to report your income on your personal return instead of filing a partnership return.Let me know if you have any questions.

It's an extension of credit but it is not a loan, per se, since they did not give you cash.Balloon payments benefit the seller, not the buyer.

A deposit is an amount to guarantee performance, it's not a grant, earnest money per se, a down payment and ALL deposits are subject to funds being returned regardless of what you agree to saying it's not refundable in RE, if the judge says so!

Conventional will require at least 1 yrs returns as a SE borrower (with qualifying income), as you already know, but even without a return, you will need to provide that info through bank statements, asset depletion schedule, CPA produced income statement...something. 

Since it is not your loan, you cannot refinance it per-se (well, there are a few ways to attempt it, but probably not recommended).