I plan to hold into the property for long term...at least 5 years maybe even longer...every $ hurts out of pocket :) lol, however I guess, the extra money will not strap me for cash but thereotically I will be able to acquire less propeprties with my available funds, theroicatically in the operative word, becuase practically I will need at least 3 to 4 month between each acquistion to do it right (find a deal, close , fix it a bit and rent it out)..

In conformity with or permitted by law: legal business operations. 4.

The value is based on the net operating income.

They certainly CAN be problematic, especially a disposer, but if you provide clear, written, instructions on basic operation, AND make sure the tenant knows they will be responsible for the cost of service calls caused by misuse, your problems will be minimal.

They obviously operate where there are few records.

If YOU are going to operate it, and invite J.Q.Public in for a fee, in my experience the preferred method is by "licensing" the use....NOT renting or leasing.

Even if your policy covers fire it might not cover the liability if someone dies in a fire.Generally it is a bad idea to let a tenant operate a fireplace or wood burning stove.

Subtract your costs from your rent, and you have Net Operating Income (NOI). 4.

Those are great, but are they renovations that will decrease your operating expenses?

If the investor puts the down payment into the LLC at formation, you can buy the property directly with the LLC (bank will require personal guarantees) and that gives you *some* liability protection, voting control over daily operations, and saves a step over the above process.