In that case his $5K is earning him $50/month for 6 months and then he gets his $5K back, he earned $250 or 5% in 6 months on his $5K, that's better than anywhere else he could have put that money. 

At this point I am looking to take real estate investing to the next step and have some extra capital to continue to build out my investments.

Also, if you're potentially looking to offer these people to invest in syndications via SDIRA, disclose upfront the potential of earning UDFI and/or UBTI which will in turn hit them with UBIT. 

So there was an extra person, I charge $500/pp, and she lives there for 9 months, so I can counter-sue for $4500?

The pro for you is having two people working to earn your business.

You just can’t add to the foundation of the home- add extra bedrooms, create an open floor concept, etc.

. $40kHi David, I found my gap funding by proving a learn and earn program for new investors that want shadow us in our business.

You can purchase a nice B class property say in Cordova for a discounted price from the market value, rent one or two rooms out for the first year and earn almost as much as if you were in a duplex.

You can't try to fill in extra stipulations when there are none IMO.

The point is, both of those numbers are respectable (18k or 19k) and that 20k in extra purchase price barely affected my return.So yes, you can pay retail and still make money.