There is nothing wrong with that.

(The nerds could be wrong, and there are different FICO algorithms used by different industries, and your FICO fluctuates +/- 20 points month to month for no reason at all, etc)

As a result, I want to lay out a scenario I hope to create (let's assume I can create the scenario below) and I am asking feedback on all of the things that could go wrong that I should anticipate/prepare for: Scenario:5 fourplex properties = 20 units (average $900/month rent) - Looking for cash flow not necessarily appreciation for these properties$1.5MM in investment property debt (Average purchase price $300K; Market Value $400K)$500,000 equity across properties (Average $100K)Loans: Conventional fixed rate or seller financing fixed rateRental Income: $18,000Mortgage for all properties monthly: $10,000Cash Reserves on hand: $200,000 (separate from the equity in the properties)Reason for Scenario: My purpose in stepping away from a full-time job would be to start ramping up flips to pay down the mortgages over time.

There is certainly a right and wrong way.

Even at $1,700, I would still be at negative cash flow.So my question for y'all is what am I doing wrong?

Hell I'm beginning to think I may have been wrong about them.

The entity type is up to you and your legal and tax advisors but the main reason is to keep all assets separate from each other and from you so that the one does not affect the whole if something goes wrong.

*** I'm okay with being wrong and subjectively teachable.

Hopefully I'm wrong, but I think any funds invested as a GP or an LP would have to be non-1031 funds. 

I think the owner may be out of the deal per se but correct me if I'm wrong @Shaun J. are @Najee Hoggard best options to try and wholesale with the bank if nothing can be done for the owner?