I'm invested with individuals who have each put much more cash into the deal than I have, and their only compensations is a fixed percent of total profit. 

But if you're going out of state or just don't want the hassle, starting with a property manager is totally fine!

If you take the $653K out of loans and put it in the cash line there would be no change to the total adjusted tax basis and therefore capital gains would be the same.

Maybe 1500 other closing costs, so 6k total. 

Or if its a total bummer your client does not blow due diligence money on something that is not going to close.. this is very common when working with wholesalers who dont want to spend money on anything.

Based upon the cost seg studies of my clients, a building will typically yield 25-30% of the total cost that can be segregated into personal property and land improvements.

Understand the fees involved and calculate the total cost for an entire year of management so you can compare the different managers.

Totally agree with having both, that's IMO a balanced investment.

The information contained in this post is not to be relied upon.

He believes that area where he will be buying the new homes is going to appreciate and attract more MTRenters, but now, the big difference is that he would now have 3 properties that can go up (or potentially down) in value, go up (or down) in rent, and three times as many vacancies to fill.My back of the napkin assessment is that for only a drop in $200 a month in cash flow, he would control a lot more assets with growth potential and as rents rise over the coming years, the combined rents will increase to a total more than the single rent.HOWEVER.