However, the guy is a professional and has assets, furthermore his wife has hung pictures all over the house, I don't think he really wants to leave.

However, I am in real need of a new vehicle and up to this point I have had an aversion to paying a car payment as it is a depreciating asset.

Hi Bob,When purchasing apartments/multifamily, there are 10 main reports you want to obtain during the due diligence phase (between contract and close):Financial document auditInternal property condition assessmentMarket surveyLease auditUnit walk reportSite surveyProperty condition assessmentenvironmental site assessmentAppraisalGreen reportMuch more involved than due diligence on a SFR.

I want to get involved in real estate, because I want to obtain enough units to meet my passive income goal per year ($100,000 / $8,333 per month). 

I don't know what a good vacancy rate is as opposed to a bad one.. but if your managing 2k to 10k houses I suspect your always have some manner of vacancy.. the main take away for me is you simply cannot buy property in the "cash flow markets" were your buying in the lower third of the economics of a given MSA.. those are just tough for whatever reason history has proved this.. most of the buyers have only them selves to blame here.. they are all mesmerized about COC returns and take risk they just don't understand.. then they blame the tenant and the asset.. when in fact its their own choices that lead to the inevitable in low value asset or bottom third in price point in a MSA..

@Giovanni Luna a development deal takes a long time to get the asset cash flowing and is more of a longer term play.Consider rentals, flips, wholesales, notes, existing multi's, etc. for cash flow NOW.Good luck!!

And my caution turned out to be fortuitous because the bank was really trying to unload non-performing assets.

Between the annual reports and filing fees, and also the overhead necessary to maintain separation of assets so the corporate veil isn't pierced, the cost-benefit just might not be there.Might make the most financial sense (and most streamlined) to run her as a sole proprietor (Sch C) and carry appropriate and adequate insurance, which you should be doing anyway with an LLC. 

I agree it’s not that great but it’s not a pure financial loss either (it would become only if you lack sufficient liquidity to operate the asset as planned over the period).

The short answer is the financing depends on many factors; income/assets and credit of all partners or parties to the transaction on the buyer's side, operating income statement for the building, deferred maintenance, occupancy all come into play.Stephanie