If you don't choose to enter into something such as HML, or invest in gold, etc I see no reason to set up a self directed plan.  

@James TrautzCongratulations finding a coach mentorIf you're entering into a lease with option and assigning that you may want to get license because Illinois may look at that as brokering an agreement without a licenseIf you get on title first and act as a principal you're not brokering

Hey @Pedro Oliva - hopefully others can jump in too, but I'll just say - the calculators are accurate, to the best of our knowledge, but only so far as the data you enter.

Since we were under contract, a tenant vacated one of the upper apartments and we asked that it be left vacant.Also - our local MLS contract does NOT have a stipulation that the seller may not enter into new agreements with tenants without the buyer's written permission (as I have seen in other markets).My concerns are that this seller is marrying me to this new tenant from out of state, not vetted by me, and no payment history in this property. 

I'm just wondering if MF investing is a network that you can just enter into once you have enough money or is it like SF investing where you have to work and pound the pavement trying to find a good deal that will work for a rental.Let me explain why it seems to me that MF is a network.  

Some operating agreements will say that any cash flow to the investor first reduces the investor's principal, thence it credits toward accrued preferred return, thence you enter split territory.Other operating agreements say that OPERATING cash flow is first credited toward current preferred return, thence to undistributed accrued preferred return, thence you either reduce principal or enter split territory (one or the other)...and any CAPITAL EVENT cash flow (refinance or reversion proceeds) first reduces principal, then preferred return and so on.While subtle, there is a difference. 

Here's what I do:Know their names- when they call, when you see them.Handle repairs quicklyTreat them with respect- give them as much notice as possible before entering, listen to their concerns, and be willing to work through any issues.  

Be very cautious about entering into land contracts with owner occupants.

Shawn if you're in Pennsylvania I would look up @Josh CaldwellWhat works well for Pennsylvania's property code is to enter into a lease and option with the seller, record the option, charge an option release fee to the tenant buyer, and have the option release fee on the HUD 1Josh is awesome

Perhaps you could pay the owner some consideration to enter into a contract that they won't exercise their right...check with an attorney.