The subject property is the only eyesore on the street, it appears to need mostly just cosmetic interior/exterior upgrades, and it basically pencils out at 7 units-- with an 8-unit conversion it will allow a refinance of most or all of invested cash within 2 years.

And you must not forget that WHEN (not if) there are bumps in the road the monthly distributions will be put on hold, you may be told to have to invest more (a "capital call"), or you may lose some or all of the principal originally invested.Spark's self-reported record is "two dozen or so" investments, 2 of those have had their distributions paused and one of the two had a capital call.

Its possible to inadequate insurance would create liability even with a non-recourse loan. 

Hello all,I currently work an 8-5 job that is very analytical and numbers-oriented.With a solid background in finance, I would like to leverage my skills in analyzing deals and get started in the real estate investing arena.GOAL:Purchase SFR (3/2) rental property in the next 12 months to create passive income sourceRequirements of SFR: ≥$200 per month in cash flow (Income – Operating Expenses – Debt Service)Use property management companyGood location (schools, low-crime, etc.)Certain property condition criteria (ex. no foundation problems, etc.)Financing options: Seller financing would be ideal, but I understand this is 1 in 100Most attractive alternative:Conventional loan – 80% (thus, 20% down payment)Most or all of down payment financed through private lenderThus, my only out-of-pocket costs would be rehab expenses (but best case scenario if private lender can cover those as well)As you can see, my goal is to buy an SFR with as-little-to-no money down as possible (at a nice discount, of course) and create instant equity through forced appreciation.A few questions for you experienced investors out there: Does this financing sound reasonable?

Are the written or oral?

Co-Owners shall have the right to approve the hiring of any property manager, the sale or other disposition of the property, any leases of a portion or all of the property, or the creation or modification of a blanket lien.

@Kendrick WalkerI just came across a local opportunity that might need a HML or all cash purchase.

If you can purchase a property below market value that needs some work, fix it up and refinance most or all of your investment out, and then repeat this process, it keeps the snowball rolling.  

I think the only thing that people won't disagree with much is that; there will be some sort of correction in major cities, and it might happen this year or all the way out in the next decade.

You can obviously go a bit easy on the income side, but don't go easy on the rest just because the government is paying part of or all the rent.