I just wanted to resurect this thread becuase Im zeroing in on what this will actually cost me and what type of income it would generate.Roughly it would generate $11,300/mo (4 3bed, 6 2bed, 6 1bed & Im operating on the conservative side for the rent amount).Expenses would roughly be debt service of about $6,600, $900 for property insurance, Its exempt from property insurance for 5 years (renisance zone), $700 in maintenance, and I would do all the property management.We are talking the place from the gutting phase all the way to turn key for a million bucks.

Most of them are small operations but they all have that really cool machine in their full size vans that seem to turn what appears to be a lost cause into something miraculous(sp?)

You should formalize that partnership with an operating agreement.

I have been told be careful not to pierce the veil and always have a notarize Operating Agreement that specifically stating that members cannot be required to put in more money and are not responsible for debts (although watch out for personal guarantees) or liabilities etc (many other things should be in the operating agreement beyond the scope of this post).

Reviewing the operating budget will give you an idea of risk for special assessments and potential fee hikes.

You experience will serve you well as you look to start fresh and operate from a more professional level.

They'll first calculate average Net Operating Income, computed by property, from the previous two years tax returns.

For quick evaluations, you can use the 50% rule which states that 50% of your gross rent will go towards expenses (operating, capital, and vacany).

I'd read through all the laws pertaining to your operation.

,Is this LLC operating as an S-corp or as a sole proprietor?