Image if I had 30, just 3 x those numbers.Directly investing in a turnkey rental or small MFH is a good way to start to learn and build up the war chest to go into my scaleable investments such as private placement syndications.

One thing for you to keep in mind would be to make sure you have the right team, investors and research any potential securities issues when you solicit passive investors.

@Eamonn McElroy is correct, as usual.The only thing I would add is that the net income from the SMLLC that the owner receives will be subject to Self Employment Taxes, which would include social security and medicare.

 (2) A HELOC is more like a credit card that is secured by the property, in that we can take a draw and pay it back and then take another draw, and pay it back.  

Sure there are times you may need to get tough, but that should be the exception, not the rule.. read your lease  understand your local laws, and remember this is your tenants HOME (expected right to privacy) Also, in the states where the laws allow, I would be careful that walking onto someones private area would get you shot.

It is also possible that cross-collateralization is occurring, that is - one or more lenders has each of the properties securing the debt for the other properties.

Private flood insurance options are usually written through a Lloyds of London Flood Insurance syndicate.

Your biggest goal right now should be getting a decent W-2 job (assuming you don't have one yet, but if you do, congratulations again) to justify both your college debt and additional debts to secure real estate.

Whatever you offer is cash in his pocket vs losing it to an inevitable tax lien sale = no cash & eventually no where to live.Most of these 'people' are oblivious to any knowledge of financial security so I'd find out what he would take to just walk away flush with cash.

Professionally, I work on a small investment team managing private money.My target property is small multi-family units (2-4 units).