Subtracting money I put down in earnest and closing costs on one deal that I doubled closed (made $50k on it) brought in around $73k in profit.

We're doing the disclosures now and I was quite surprised at the 2.469% of Loan Amount (points) Origination charge which brings the total Origination charges to $16,500 (Property cost is 645K, 10% down).

And, as Nathan noted, you are likely giving up huge appreciation potential, which will likely never be replaced by cash flow.But at the end of the day, if you are in a declining market in LA and are able to find great deals in higher cash flow areas, taking into account the likelihood of needing to outsource everything and additional travel costs to visit the properties a couple times per year, and you don't really care about appreciation, then it could work for you.  

true cash flow is only going to come either (1) after many years of ownership, when the property is stable and rents have gone up; or (2) with a completely different, probably tougher strategy or niche.think about a down payment, closing costs, light repairs, rent ready costs, commission to the property management company, then you fix a dishwasher, then in year 2 the furnace goes.

Did you end up using ownwell?

And lastly, make sure the property management company has experience leasing and managing Section 8 properties, since there is a lot paperwork and processes, and I've seen experienced property management companies who do this stuff all the time, screw up on multiple Section 8 leases to where the tenant's packet expired because they were so incompetent.  

Ask about any unforeseen challenges that have come up (there always are, so not all challenges are a red flag), and overall let them know you're an involved LP who likes to be kept up to date on things

As for Innago continuing to allow your tenant to pay by ACH, that is up to you to stop.

No start-up capital, no reliance on banks, no particular expertise required (initially at least, we had still had to learn a lot along the way!).

But ignoring the safety of your guests could cost you everything that you own.