@Kory Quitter that is fantastic what you are doin Kory I’m currently in the same boat right now where I Invested with my friend, and as they say never invest with your friends haha what you could do that Iv heard people doing contact your bank and see if they do Mortgage assumptions, What this allows you to do is take your grandparents off without refinancing or going through the hassle and paperwork some banks will allow you to just keep the same payment but just take your grandparents name off.

At some point, the market will flatten out and any aggressive assumptions will come back to bite you in the butt.  

What you presented was more like a number of different concepts, based on assumptions, guesses and info not yet accumulated.A plan is based on actual numbers, with actual properties, and actual examples thought all the way through. 

I would make the assumption there is weed growing in the basement, that they do smoke weed and for that reason you will need to get them out when you take ownership. 

What would the contingency plan be if the buyer starts construction and can't finish...Sounds like the assumption of risk is very high. 

I've attached a picture of my spreadsheet for reference.Key assumptions:20% down, 30 year loan at 4.5%Property management fee estimated at 9% (includes fixed and variable)OpEX - 5% of rentCapEx - 6% of rent  Vacancy - 5% of rentInsurance 0.4%Property tax - I used 2017 numbers and bumped it up by a bitI assumed no up front CapEx to simplified things but likely there is some work involved

If you want to be financially independent, and you want to get to that point via real estate investing (assumption since this is a real estate platform) then why would you let anyone else tell you to do otherwise.

While investors really wish that agents would not make that assumption, the disabled community wishes that of the real estate investors community. 

Doing a quick look at Mashvisor (link to my 1-second search here), it seems like your assumption is right - traditional renting is likely a better prospect than airbnb, but worth checking a few comparable properties (comps) to see if your hunch is right. 

Lets now also assume he has financing in place at theses terms:75% LTV ($75k)Meaning the bank gives him $75k cashThis assumption now only leaves his total out of pocket costs at $5kNow lets assume his annual net operating income (after all expenses and financing) is cash flowing about $1800 a yearIf you divide his NOI ($1800) by his all in costs ($5k) you will get a Cash on cash return of 36%.