Going from a 1 man (or woman) operation to a 2 or 3 man operation (incl. an assistant).

How likely do you think unforeseen negative aspects of changing a large part of how our economic society operates are if the code was so simple a monkey could do it?

So, out of that $1400 in rent, you're left with $700 in "net operation income" or NOI.

Even with 2% appreciation, fours years is not enough time to cover resale costs and operating costs in most cases.

In this case, it would depend on how the operating agreement was written, or the preferred method of the managing member.In either situation, as long as the LLC is registered and in good standing in your state, and has legal title to the real estate, then you will have the protection from liability normally provided by corporations.

The operations and management partner will actually be on title and assume any risks associated with the property.

Just because the HOA has low Association Dues does not mean that it is collecting enough money to cover it's operating cost and saving in the case of an unexpected maintenance emergency.

I have helped many buyers purchase REO'S in the DFW, so I know how most banks operate.

You could probably do either yourself; however, be sure that you have a good lawyer set up your operating agreement.

Lynn,The title of your post says "their" as in agents in the plural sense.Never in my post did I say anything about you.I posted real world experience on how things operate.There is a real world difference of how things "should" operate and how actually things "do" operate.Buyers can say how unfair buying REO's is and they get beat out etc. and cry foul OR accept that the world is unfair and figure out how to get their share of the deals.If you buy multiple properties it helps versus a one off.An REO broker is not going to want to tick off an investor that buys 20 properties a year from them just to give you a deal where you buy one time.