Should we form an LLC together owning equal amounts of the LLC and then have it purchase the property? 

It just seems like with the huge amount of car traffic that I would make much more money than just $800.00 to $1,200.00 per month in rent from a tenant, in the long run.

I simply want to borrow the money by Note for the loan amount plus a nominal interest rate to be paid when the note is called.

At $390k that means $292,000 loan amount. 

@Nick Hakim mentions many of these things such as reputation, deposit amount, closing timeframe, etc.

All depends on that amount since you'll want to offset that off the price of an exchange - probably $750

Different areas of the country charge different amounts so do a craigslist or google search on what that charge would be.......THEN let the tenant know beforehand....it will cost $XX.XX Dollars and you will get it done within 7 days. 

You only start profiting after your cumulative CF has equaled the amount of cash you put in. 

So I could see myself having maybe 2-3 people who want to invest with me but with relatively small amounts at first to sort of test the waters. 

If are looking for a smaller amount for a shorter term then I’d lean heloc.