The only way RLD will not negatively come into play for the actual investor ROI achieved is if the investor leaves their money in the fund until no defaulted loans exist or if no loans default for the time they have investment in the fund, which are not a realistic assumptions for deriving actual investor ROI.

Here are your numbers, based on following assumptions 25% down payment and 5% interest rateNet Operating Income $2,689.5/$29,874Cash Flow $810.62/$7,327.44Cap Rate 8.5%Cash on Cash 8.1%

Banks will pay him 1% or less to put it in savings, so you are offering a better return to him.Assuming your numbers are accurate and making a few assumptions as to costs that need to be added to it, I broke down the deal and the numbers look good.

I'm under the assumption that if I'm able to do so, it would be at a significant discount.

Again, it's an assumption, but at this point I'm looking at all the worst case scenarios.

Compare the two, weigh the risks in your assumptions, and pick the best risk-adjusted one.What you just did what calculate the IRR for two investments.

That is my assumption too but still quite vague in the AZ law for this situation.

So, no an option isn't going to help him, rents may.I'd caution you saying no, you don't have the basic ideas about options or a lease with an option to purchase because things have changed, there are new installment purchase assumptions for tax purposes and with residential properties you may bump into Dodd-Frank. 

You are basing your statement off an assumption.

Thus would begin my RE career, and I would transition to part-time work at my job as quickly as possible to focus on investing.So there are probably a lot of naive assumptions in the above that you members will surely set me straight on.