It takes a lot of SFR spec build or rehab deals to equal one of those if purchased correctly.I have an operation set up in east Austin where I work with some trusted partners and pay them a small fee for their time as part of the overall project.

It has 21 lots and a 5 unit apartment building plus a laundry room (coin operated) The MH park needs a lot of work.

Jason: you will find the 2% rule operates in low income , low priced properties not necessarily in war zones but not in A or B areas.

They will usually help you and show you how their system operates.

Its very easy, these guys prey on people with more heart and hope then dreams. third person money lenders virtually NEVER work. they are lining their own pockets and then hide behind every excuse in the world on why you can't get financing.

The property is a 4plex with four 1/1 units in a nice neighborhood filled with SFR.Asking price: $120,000.Disclosed Operating expenses: - $80/month for landscaping.- Tenants pay water/sewer/cable/phone/garbage/electricityReserves I Calculate:- 6% for vacancy. ($96 per month)- 6% for repairs. ($96 per month)Estimated property taxes: $1,462/yr.Estimated insurance: $1,482/yr.Lending Terms:25% down payment = $30,000.$90,000 @ 4% over 30 years = $429.67/mo.Each unit currently rented at $400/mo.

This is not section 8 and is not operated like section 8.

We operate like any other business from 9 to 5, and by appointment on the weekends.

Somebody, at some point is shelling out a lot of money in this operation.

I'd suggest when yoy talk to your attorney about forming the LLC that you include, specifically all kinds of activities in your Operating Agreement and Certificate of Incorporation and not rely on that catch all description of doing all things.