You're spending over $600k (purchase price + rehab + fees) to make $25k, and then you'll have short term capital gains on that...

Rent Per Unit $‎650 $‎700 Other Income $‎750 $‎800 Less Vacancy $‎(3,120) $‎(3,360) Operating Expenses $‎18,790 $‎19,809 Repairs $‎4,000 $‎4,200 Capital Expenses $‎2,000 $‎2,100 Landscaping $‎1,500 $‎1,575 Utilities Vacant Units $‎288 $‎302 Property Taxes $‎6,000 $‎6,300 Insurance $‎1,500 $‎1,575 Management $‎3,002 $‎3,232 Other $‎500 $‎525 Net Operating Income $‎41,241 $‎44,831 Financing Expenses $‎22,224 $‎22,224 Cashflow $‎19,017 $‎22,607 Down Payment $‎21,000 $‎21,000 Cash on Cash Return 90.55% 107.65% Keep in mind, this return doesn't even include the principle pay down on the loans.

I usually take some of the recycled capital and buy a note to pair it with. 

Be careful about feeding additional capital into syndicates with short-term loan maturities if the only plan is to negotiate lender maturity extensions for another year. 

Much more difficult to raise EQUITY capital through partners 3.

Congratulations on looking to invest and putting capital to work!

They might not be great for cash flow but might be great for long term capital appreciation especially when you use leverage.I’d rather own a $1M asset that breaks even but appreciates consistently by 3% than own a $100k asset that cash flows $3k per year.There’s power in investing in or near your backyard.  

And it might not look very tempting when put together.This part is for anyone reading this who never comments: My humble advice to anyone attempting to do creative finance is:Creative finance is for experienced investors who have access to capital if everything goes wrong.

I hope to use private capital to fund the entry fees in second position.  

As to Grant Cardone, you have to have capital to do a bigger deals... and syndications is one way you can do that (which as I understand it is the deal that Grant pitches)... combine  your money with others to do the big deal... but at the end of the day, you own $20,000 worth of a $10 million deal if you put in $20,000.