So I'd only gain about $150 a month so it would take years to re coup my initial investment. 

questions:1.Should I go lower with initial offer?

I do have a full time job as an attorney, so my initial efforts will be limited to passive - or at least somewhat passive - investments.  

based on my initial evaluations it looks like a VR would generate more cash flow but I am making some assumptions on the vacancy rate and not sure how accurate they are.  

The one with the higher cap rate with less initial yield might be a turn around project that has more equity upside down the road and rental increase with lease up along with cap rate compression.Would you go recourse or non-recourse??

So A gets $1k in interest at years end, B gets $500, C gets $5k. 10% is probably a bit high, but you get the picture.Another way is to structure it like a fund, where the main money men get all the profits and distributions until all their initial capital is returned, and then the money men give a big percentage to the 'sweat equity' manager guy. 

You will have to occupy it initially to get an FHA loan.2.  

Hi @Jennifer Taft,I didn't initially have too much luck with realtors either.

Bob, I also have experience in Records Storage - and enough to know that the 1st step is to add that piece to your feasibility study to determine if there is enough need to warrant the initial outlay in bar coding, scanning equipment - racking, and yes, HVAC equipment.  

I am not a CPA buy I think you should have included the repairs in your initial basis when you purchased it.