There are a lot of variables to consider, but this has been the general consensus from the investors I have been having conversations with.

UNPOPULAR OPINION: I think you're better off investing your 150k to a real estate asset management firm like Foundation Capital:  Home | Foundation CapitalWith 150k they'll pay you 13% or more annual interest paid out monthly and it's a secured loan. 150k*13% = 19,500/12 months = $1,625 MonthlyNowCompare that return with what you're trying to do with the student rental...Purchase price 400k20% down + closing cost: 90kCashflow statement:Mortgage: $2,150 (6.55% variable over 25 years)Property Management: $440 (10% of rental income + tax) Utilities: $600 (Water, Enbridge, Hydro) Property Tax: $250 (assumed 3k annually/12 months)Home Insurance: $200 (assumed)Short term Maintenance :$195 (5% of rent) Long term Capital Expenditures :$312 (8% of rent)Total Expenses: $4,147 Rental Income (650/room*6rooms) = $3,900Rental income - Total expenses $3,900 - $4,147 = -247You're making NEGATIVE 250/month...I get what you're trying to do.

These are always variable interest rate.If you do a mortgage, then you could do a fixed interest rate for a set term of say 3 or 5 years so that you always know what your payment with be and this would also pay down some of the principal at the same time.So work the numbers and Good Luck!

I recommend you do this each year to adjust for utility increases and other variables.

I always apply for EINs myself.Not sure about the nature of your purchase (e.g. cash, financing), so there are many variables to consider.

Lots of variables. 

I realize there are a ton of variables here, but I have a single family, duplex/fourplex portfolio and have always used 40% of rents are going to be eaten up by all expenses, including tax and insurance, and the rest is to pay the mortgage and keep.

Maybe I am old school, but I would never do a revenue split deal with a stranger.There are so many variables on how things to go wrong already.  

I was fine taking the cash flow hit to be ready again to deploy those funds on the next one but more so for the piece of mind to be out of my temporary variable rate financing.

The equity loan and LOC are variable rates, which are not good long term solutions.