This 2 to 1 ratio is required because 1) they are work and my time deserves to be highly compensated. 2) big rehabs have some risk.

Only entertain this if you feel you can perform.A lease option will require a down payment, more than likely, followed by a balloon payment upon a payoff due date.

A partnership vs. disregarded LLC warrants consideration- you face different reporting requirements, limitations, etc. 

Both what the resulting end product will be AND the capitol investment required. 

I would buy it also for roughly the same price (it will be in good condition but may require some small fixes for a tenant), but it's bigger and has an extra bedroom so it will rent for $1400.I could have also ran this model by assuming that I would get the same type of property as the turnkey, but for $125k and would rent for $1200 as the turnkey would.

Real estate just like stocks and other strategies requires intelligence and a plan.

There are dozens of check boxes, some of them matter, and Balance Sheet and capital accounts are now required.

Most if not all of these properties require SIGNIFICANT cap ex rehabs and conventional financing won't touch them; you'd likely need to go the hard money route at 10-12%, 2 points, 12-18mon turn around.

It's easy to obtain, costs very little, and doesn't require extra, on-going effort to maintain.

Short-term rentals of non-owner-occupied properties will also require a special use variance which is obtainable by starting with the completion of an application in the Zoning Department."