Check the comps for rentals in that area if everyone that has that price point of rent is paying utilities it may not work out.

One of my concerns is if the value add does not work out or the deal starts to slide due to a recession or other reason, the institutional partner could decide to sell without letting the other limited partners have a say (say via a vote) and thereby force us to sell at a depressed valuation since it would be unlikely we would have the ability to raise sufficient equity to buyout the institutional partner at that time.

I know this doesn't always work out, but so far so good!

It stands to reason that with more and more small businesses springing up that many don't want to or can't work out of their house!

Given that this is more of a family help session, the fewer number of people involved the better.  

Not sure how much the rent is, but you could also work out the amount per day and do what John suggested, a 2 day discount. 

@Patrick Domond You need to boots on the ground an agent that can get in there and take photos....just playing the bidding war game give me a bigger offer sight unseen doesn't usually work out......you gotta know what numbers work and what numbers don't work...don't be scared to walk from the deal and follow up with her at a later date. 

We noticed that all of us had stories about real estate investments that did not work out the way we expected. 

I don't look forward to that, nor the possible roommate drama that could boil over.The numbers wouldn't work out (it wouldn't cashflow) if I only rented this to one person at market rate.

But I suppose if that doesn’t work out then theres unconventional long term lenders like you mentioned.Thank you for clearing that up!