You will pay about 30% in W-2 wages and the remainder as ordinary income. 

They have some of the most extensive fees because this way they can charge you fees but low points.You can expect to pay about 1,500 in closing cost fees: Legal, processing, underwriting.To get in a good loan, you would need some experience in real estate flipping/holding preferably in Houston and be 100k liquid and have credit 700+.You fill those three needs and I can help you for sure.

She will be finishing up her doctorate and finding a job and I will be finishing up my degree and getting a better paying job (hopefully) in the next 6 months.

Also charging them a 50$ late fee (if it takes them more then 7 days to pay) im thinking maybe I tell them they need to start paying on the first and kinda frame it like a warning?

Plan is, ill pay Heloc in a year from what I save monthly. 

Mechanicals are in good shapeARV: $280k-$300k~$74kish left on the mortgage - 6.75% interest about $890 monthly payment / HOA ~$200 a month / Insurance $35 a month / Taxes $355 per month / Tenant pays Water, Gas Heat. 

This would be very temporary because we would either sell our 1st house once we move or rent it out then use all of our extra income to pay off the HELOC. 

Think of all the things that can go wrong and you want a way to remediate it in the JV agreement. we did this once and the partner never started the work after a year so we deemed the note in default and were going to take back the property but they ended up selling another property to pay us off.

More tenants only need a 2 bedroom than a 3 bedroom and are not willing to pay an extra $500-600 for the 3rd bedroom.  

However, the tenants will be paying that PMI so it’s still better than not buying.