Also, the fees plus being a forced buyer with a deadline on a 1031 exchange may negate the small tax savings.

Interest only loans allows them to get a goal profit of $500-$600 per month per property.3) Each acquisition would require 20-25% down at an 80-100K purchase price. 4) Closing costs, and the Eric Spofford turn-key transaction fee of 10K would be in addition to the down payment and were not included for the purposes of calculating the cash-on-cash return.

-OOS investors rely on service providers like agents and PMs and think they're guaranteed an outcome instead of just paying a fee for a service.  

Normally, as @Jaycee Greene suggests, you make a management fee plus a split of cashflow with investors (oversimplified explanation).

LLC's separate your personal assets from your investments and offer you protection from lawsuits related to your property, they can help to establish a more professional image if you plan to expand, and they provide some flexibility on how you are taxed.There are some drawbacks, included fees and administrative work, but it's ultimately best to consider speaking with a CPA to determine the best option for you. 

We have a ongoing list of each along with their fees and what state they are licensed to collect debt in.

I dont know your business model exactly but I assume you collect some referral fee from the supplier?

ARV 690KSelling Price 500kRehab 85kAfter closing costs, points, hard money, lender fees...

The tenant hasn’t been the greatest: late payment with not always paying late fees, multiple complaints from the neighbors, changing phone numbers, ect .

It simplifies the process since Zillow handles credit, income, and background checks for a small fee paid by the applicant.Background Check Services: If you prefer not to use Zillow, consider using services like MySmartMove or RentSpree.