This is a practice by some less than reputable companies.

You get to choose.

If you assume the property value continues to climb at a consistent 7.14% and you remain cash flow neutral... then your return on investment is only 7.14% per year (assuming you can sell when you choose to). 

Then you could also choose to use on Traditional LLC as an operating company, to separate the liability of your operations (contractors, property management, etc.) from your assets.For which entity, whether Series LLC or C-Corp, will fit your portfolio best, you need to talk to your CPA.Some generalized comments on the topic, though.

Your best bet for buying with some equity is either through a reputable wholesaler or good negotiating via the MLS.

Lastly, talk to your accountant or tax advisor as there may be tax implications with capital gains by selling your property too soon.Just some things to think about as you start down your new path in Real Estate.In any case, welcome to the RE Investors "club" and good luck with whatever you choose to do!

If you are looking for guidance find a top producer that is ethical, will give you thier time, and has what you want, there are too many crappy agents in the business, choose wisely if you go that route.

@Joey BiccumI would venture to guess that anyone in your area who chooses to rent a place to live for $1900/month has made multiple housing decisions about their lifestyle that are unconnected to any sort of poverty they are experiencing.

Looking back however, I'm very thankful for this experience as I've learned how important it is to choose your partners wisely!

In choosing which options is best, you may want to look at what is feasible and what is not.