Maybe the windows were more pricey than expected and a structural support wasn't anticipated in the 100 year old house. 

The importance of getting your system in place for how you will structure all of your properties as you get them, in my opinion, outweighs the need for a first time home run.

The importance of getting your system in place for how you will structure your properties as you get them outweighs the need for a first time home run.

@Wayne BrooksThank you for your comment.After some reading and research I have found that most syndicated deals are structured that way.

Start with a small multi (2-4 units) that is already existing, that needs cosmetic repairs (paint, carpet, windows, but not foundation issues or other major structural renovation).

Some of the concepts roll over to multi family as wellSome costs during operating period including but not limited-Initial Phase-Leasing commission one time for 1st month( if using broker) (depend on broker fee structure)Property mgt fees (depend on broker fee structure)Landscape costsRekeying your house or change locksCleaning property Vacancy Any repairs During occupancy-TaxesInsurance Property mgt fees (not included if you're managing)RepairsRental permit (depends on city)Feel free to ask any questions -Kevin

Do you walk around the outside 1st and look for structural issues or do you go right inside and see the status of the flooring and walls and kitchen?

If a second structure is allowed you might want to consider a modular home.  

I have been told by several Attorneys that you also have to structure your dealings with regard to the LLC to keep an Arms Length approach. 

So on one end of the spectrum, I do deals that would be a flat fee type structure I'm assuming, and on the other end I have deals that would operate like a traditional loan but with a balloon.