You will need to learn about the local laws, advertise, background check applicants, meet them for showings, answer questions, get a good lease, answer the phone at any time, arrange for repairs, do inspections, manage finances, manage an LLC, and more.

Since IRR takes into account the time valueof money, it’s no surprise the IRR is highest in the first two years.I ran four scenarios and raising rent doesn't impact the IRR.Scenario #1: Keep it and Raise Rents by $500+Both units had the same tenants in there for the lasts three years.

In my state, CA, there are drastic property tax changes which need to be accounted for.* Get an insurance estimate for a landlord policy, to put into your rental equation.Basically, you want to assess the current situation prior to making any actions, and decide what the best avenue is for you.

Check out the Bigger Pockets Real Estate Podcast Ep 968 on YouTube: 

Check out my personal favorite, Set For Life by Scott Trench , or The Total Money Makeover by Dave Ramsey.3.

This might be a workable scenario for me.Lack of experience would not kill this deal for us but it would depend on a few things.Usually the biggest challenge for newer investors is in the amount of equity you have available to infuse into the project.You need to have a cash down payment to secure financing.With 25% Down you would be in a multiple financing offer situation where we're just fighting to get best deal possible and batting off Wholesale Account Execs left and right.

If so, check your lease requirements.

We agreed that the GC partner will setup his own LLC and bank account and I will fund.

If you want to learn more about the practice (and art) of safely and securely finding and funding a PML to see if it's for you, check out my book on BiggerPockets called Lend to Live: Earn Hassle-Free Passive Income in Real Estate with Private Money Lending. 

we had 250 investors that represented about 50 million.. and each and every loan save a handful were fractionalized and in the old days of course payments were in the mail and by check so we had a full time Gal ( Carol ) who knew the portfolio inside out..