Price: $75,000Equity/Down payment: $20,000LTV: 73.33%Monthly Rent Income: $1,150Yearly Gross Operating Income (accounting for vacancy loss): $13,000Taxes and Insurance (yearly): $1,500Yearly Condo Fees: $3,600Misc Yearly Maintenance: $600Yearly NOI: $7,300Yearly Debt Service: $4,500---YEARLY BEFORE TAX CASH FLOW: $2,500CAP RATE: 9.73%ANNUALIZED CASH-ON-CASH RETURN: 12.5%What do you think?

At the small end, there are virtually no barriers to entry and it is a potentially very lucrative business to enter.  

While operating an LLC is fairly simple there are a lot of considerations to make.

In the end, the way to go is whatever the two of you work out as fair, just make sure it is clearly documented in the operating agreement.

Another city near me requires a permit for battery operated smoke detectors.

I hold an engineering degree as well as a masters and have worked the past 7 years in aerospace operations.

Do you operate in Milwaukee?

When you factor in the 50% reserve, this is basically saying that you take 50% of the top of the gross rents and save this for maintenance, repairs, and other operating expenses.

Equity REITs own and operate income-producing real estate, while mortgage REITs lend money to real estate owners and operators or deal in the acquisition of mortgage-backed securities or loans.

I have also partnered with Dave on several parks- though now that they are really operating as a fund, I no longer am partnering with them.