That is a much higher return on investment than the cash flow from buying a $200,000 property that requires no work.

Hi Patrick, A few things to think about:You'll need to find a property management company who will manage any deal that you buyYou'll need to meet the net worth and liquidity requirements to qualify for a loan You'll likely need someone with experience to also sign on the loanTypical structure between the LP and GP is a preferred return  and a 50/50 to 70/30 profit splitYou can have up to 35 non-accredited, sophisticated investors with a 506(b) offering, as long as you have a pre-existing relationshipAlso, do you have previous real estate experience?

And you get passive income (preferred return on a monthly basis - mailbox income) and potentially get your entire investment back on a refi from appreciation.Rich help rich become even more wealthy.But you’ll have to be an accredited investor to play.Google IRS for definition.

In your post you lay out some of the common things that lead to low returns when converting a primary residence into a rental.

You dont have to start with 1% and 99% LLC now because 1) you will have to file a partnership return for your LLC.

In late August, I had asked my upstairs tenant to move out and he agreed to start looking for a place. He lived on my property through September and moved in early October. However, he says he still has junk upstairs ...

(Except probably she'll want a favor in return!

It is actually your return that is is the tax payer for the old property and it is that tax return that must be the tax payer for the new property. 

Was Offerred rates of 5-6.5% after few phone calls, with early return penalty for 3 yrs etc and company was willing to transfer money to my account in 1-3 days ( it’s not a line of credit)Thinking of using this as a down payment for my next deal, but it took me 4 months to find my last deal. 

I hear a lot of people talking about advantages of self-directed IRAs and understand the tax advantages are huge--not to mention essentially having a higher return without taking a higher risk.