We've already worked this system out with another property, and it is completely sustainable.The system I've developed turns this process into a 99% passive income stream, so that the investor rarely has to lift a finger, and the house practically manages itself and puts cash into his pocket.

However, if the place is operating as a rooming house - legal or not - when the appraiser reports back that there are 6 bedrooms (each with their own locks) and separate leases for each of the tenants, the lender will run away.Additionally, what @Ned Carey indicated about debt service not being included in NOI holds the same as practiced by investors in Canada.  

Lending is still pretty heavily regulated and the purse strings have not been loosened all that much.

Now after reading the ABC's of Real Estate Investing I would love to really dive into analyzing buildings with 4-30 units to practice and maybe find a solid deal.  

I'm planning on starting to get theory in to practice soon.I will probably start more threats on biggerpockets about my story and what I'm doing. 

It also seems to be standard practice to glue right on a wood subsurface. 

Also, regarding legal issues about wholesaling, I can point you to another BiggerPockets post pointing to a Blog by highly respected attorney Jeff Watson, who speaks with two members of the Ohio State Board of Commerce - Real Estate Division where the regulators clearly state what is and what isn't legal regarding Wholesaling. https://www.biggerpockets.com/forums/93/topics/193...Look at Marketing No Nos

The same would be true in reverse, if the IRA is enabling you.An investor engaging in this kind of joint venture is definitely getting into a gray area where the regulations are not clearly defined, and that creates risk.

Both are very practical majors to pursue in my opinion.

Dion, first of all I thank you for the long and detailed answers, i have no problem with your honesty.I know that I can't myself service notes, I guess I wrote "setting up the payments" in my mind was like boarding the notes to a service company that has all the knowledge about regulation etc.Also as in JV maybe I don't have the right knowledge but I meant as two people coming together in some sort of a contract or LLC, one is the investor and one is the "know - how guy", of course I don't think that at this stage I would be the "know-how guy", I just wanted to figure out if there is any customary terms in notes like 50-50 split or whatever.Also this post is part of me learning, I read the forums and read some books, viewed some videos and wanted a bit more information and answers to stuff I had in mind, I thought about pulling the gun on investing in a note as part of a JV so I could learn from and experienced investor.I don't take this business lightly and I don't expect rainbows and unicorns just yet, I know I have big gaps in knowledge but that's why I try to learn and digest as much as possible.