There are deals out there that can earn you solid returns off the bat, but EVERYONE is looking for them. 

That's 65% of the rent because you're earning the PM fees for yourself.

Everyone deserves a chance, but I prefer my operators to get their training on their own dime versus my hard-earned money.Match Your Investment GoalsJust as the best plumber in town would not be a good choice to give you heart surgery, a growth focused operator will not be able to provide you the cash flow you need to live on.

Although for example, if you "flip" a property, the profit/gains are taxed as ordinary, earned income (including self-employment tax) since you are considered dealing as opposed to investing. 

Worst case if you find a great deal you can always earn an assignment fee. 

Besides all of the items already mentioned about why its a bad idea, another is that at this point, it is likely that the contractor that I assume you are using on flips doesn't know the income earned on each project (they only know what their fee is).

If you sell in five years your basis is lower, so the chances the $2,000 net savings allowed you to earn that $1,000 back is highly unlikely…

@Katie LyonI take it they earn 3x the rent?

The total amount they receive from the preferred return distributions does drop because they are now earning their preferred return on the less principal they have in the deal.

Finance is more conceptual in application, much like law, but is in the shadow of a law degree.Yes, the best degree for real estate would be a law degree, but you won't earn that in 4 years.