The operations and management partner will actually be on title and assume any risks associated with the property.

Just because the HOA has low Association Dues does not mean that it is collecting enough money to cover it's operating cost and saving in the case of an unexpected maintenance emergency.

I have helped many buyers purchase REO'S in the DFW, so I know how most banks operate.

You could probably do either yourself; however, be sure that you have a good lawyer set up your operating agreement.

I'm trying to think of things we can do to lessen any work load.

Robert,They are typically subject to the state's home rule as you are operating in their state.

As a newbie I would gladly choose the $400 for 4 hours because I want the extra capital and I have loads of free time.

Then divide this actual cashflow into the "all-in" number to get your COC return.And for the cash scenario, you already mentioned that you cashflow is $5400, so your cash on cash return is:$5400 / $53,050 = ~10% (not 20%)I think the part you're missing is that the $5400 (in this example) is your "Net Operating Income," not your "cashflow."

This unit will rent for $650 per month.With $700 total in operating expenses and $2,100 per month coming in, this house will be generating $17k net income this year.

I think every new'b at some point thought just like that then eventually found it was a dead end and a major headache, including me.In contrast, there is a guy in Indy running an operation that buys 50 packs of these types of SFRs refurbishes them and sells them for 40-50k, and he is helping improve the area while profiting.