Based on a easy 10% return on equity you can see how your properties are all losing money.

So my mother recently passed and she invested several hundred thousand in a friends business and he was paying her a yearly return at 10%.

Some of those include tax write-offs and increased return on your investment.

But they will still have to file the gift tax return although they will not owe any tax. 

As a car guy and former owner of several muscle cars I can assure you that you’ll get a better return on investment in real estate than in classic cars .

However, most investors will also want to see some type of guaranteed return before I participate. 

I do not want to nickle and dime tenants to up my cash on cash return by 1.112133551678%.That being said, I am starting a renovation project converting a SF to a duplex. 

It is a lot of risk for the potential of only a small amount of return.

I have done that model and seen that model over the years.. one guys in INdy called Holdfolio did thisnot sure how it performed but chose the rights assets and proper management and that works.there was a guy in Ohio also that called him self MR> triple net.. he sold you a home then rented it back from you for a set fee then he leased it out in a master lease situation were he took care of everything.my model I used a debt instrument equity share model that basically worked like what your talking about but had a pref return no matter what was happening with the asset.. that put big onus on operator to perform..

@Mike Van Arsdale, I saw a very interesting chart the other day comparing 25 year returns of real estate over all to the stock market to real estate 50% or less leveraged.