That split can be whatever makes sense.The point is that everyone's interests are aligned - you get no compensation for your work if you don't make the property perform at least 8%.

As for the components that are hazards, there are different methods depending on the specific hazard.

I've mentioned this in previous threads, but @Brie Schmidt has a great method for incentivizing the PM so their goals are aligned with the owner's.  

What I really like about this is the diversification, and that the managers interests are nearly completely aligned with me (the investor).

Platforms using other exemptions (506(b)/NAL or 506(c)) can use the RIA regime and create alignment with the platform investors.  

I'm looking forward to my first flip project and I agree 'trust' in any relationship, personal or business is a big component in being successful. 

Her and I would do all the work selecting the homes, aligning the contractors and using her license to market the property. 

Everything is handled by the managers, and their interests are aligned with me, the investor, and thus are highly motivated to manage the properties well.

The two closest comp, one rents for $2300 and another $2100.

If certain remodeling is done or certain components of a system are replaced, it can trigger an inspection and/or a requirement to bring the entire house up to code.When purchasing a property that is new to you, be sure to do a comprehensive inspection.