Hello! So here's the deal: I am an engineer with a respectable income. I am 27 years old, and I bought my first SFR in 2009. I now rent it out for basically a break even. I am now sitting on ~$50K cash so I can comfor...

But Michael Siekerka has the reasoning down from my prospective tenant's perspective - "are you an amateur / hobbyist or are you experienced?"

Here is my amateur advice (so take it for what it's worth):Your purchase price is @ $300k and if this is an investment you can expect to put down about 25% or $75,000 as an investment non-owner occupied.

Sorry, but see the Howey Test and you can play amateur lawyer like me.

Maintaining your records, operating agreement, keeping the funds separate,etc Treating it like a business.To not have insurance would be foolish as well, but not putting a property in an entity is a rookie/amateur move.LLC's are powerful if handled correctlyDisclaimer: I am not an attorney, just an investor with several LLCs that have all stood up in court protecting me.

I don't know" just screams rank amateur."

I have many hobbies in which I don't mind being an amateur.

Let's just say anyone that is seriously considering this deal is going to want serious answers..I'm an amateur note guy, but for starters, I'd want to know the collateral so I could check comps, the condition of the property, the borrower, how well he/she has handled the payment in the past, what downpayment amount, borrower credit score, etc..

Now I would say being a beginner, amateur, or pro is relativity to that persons end goal.

However, they will put a boot in your ars if they judge you to be an amateur.