So let me get this straight. 

Less sophisticated but accredited investors will vary depending on their awareness and exposure to the business.IRA and 401k investors are happy with straight pref 6-8% right now.The splits and returns mentioned above are typically what most syndicators are offering but are not the only way to raise the capital.

The legal and accounting side are pretty easy and straight forward.

. If his previous action was a wake up call, this was 10,000 V straight to the nipples.Why real estate?

It just is what it is.You can either accept it or find another lender with more agreeable terms to you.It sounds like a straight debt lender is more what you’re looking for (one who just loans you money for a fixed return and not a percentage of the deal).

Other than that, bonus depreciation (which is what you are referencing) is available for residential property as well so long as the normal straight line depreciation method would be 20 years or less.

Then other variables can come into play...especially it seems in these price ranges...some things will make a house sell or not sell....is it a neighborhood with a view...like ocean view vs non ocean view....think about condos in Hawaii or houses in Malibu...on the beach might be $1mil more than 100ft across Hwy#1... some neighborhoods every house has a pool or 3-4 car garage or gated drive...school district can make a difference....there are some houses in my city on a curve...same street name..same street...but the school line is straight...so one house might be in the preferred zone and the house next door not in the preferred zone...big difference for people with kids....some neighborhoods are like that too...where school district encompasses two or three different cities....some people want to be in certain school districts, but it is a prestige thing to be in the district..and a certain city.   

Realistically, you need money for closing and stuff so really you can use like 12-13k for downpayment which can buy you a property for under 375K if using an FHA loan.I highly recommend listening to the Straight Up Chicago Investor podcast and specifically the episode with @Brie Schmidt.

(Data straight from the US department of labor.)This is the highest level of unemployment since The Great Depression.

We find the best areas are those in active REI spots where you can benefit from rising comps and appreciation.Finding a realtor in the area will be a big benefit to you as far as making sure you're getting legitimate deals and assisting with crunching numbers - from there, building your team should be fairly straight-forward; always make sure you work with licensed and insured individuals regardless of how small the project may be.Best of luck to you!