You learn over time how this works or sometimes a mentor is the right choice to get there faster with less expense and fewer mistakes. 

You can also write off expenses such as property management, insurance, repairs, etc.

Since you're using hard money for your fix-and-flip, make sure you also have reserves for holding costs and unexpected expenses.

The problem is that your debt payments are going to basically wipe out that $400K profit unless there is room to increase revenue or reduce expenses.

What REALLY happens when a PM get paid % of rents, for incentive, is the PM is more incentivized to keep BAD tenants in place who are paying.

Mostly MF and self storage.I bought an industrial property from a wholesaler, paid him a $600,000 fee. 

It is so much easier to get a HELOC or second mortgage on a primary residence, and much more difficult and expensive to get one on a rental house. 

Not much if any attention is paid to the guarantors, credit, income, etc. 

Adding a single small unit is very expensive development.  

But I would rather rent it out so it could be our first/foundational rental property and we can continue to grow our portfolio.We've been looking to rent for a while now but with the local rent pricing it is just as expensive/affordable to purchase your own condo than to rent.