By the way, I majored in the hard sciences.

I guess one of the major questions to be answered is how a typical private lender might structure a deal?

One major advantage is you know you are going to get at least part of the rent each and every month.However, these are all run locally and the standards, responsiveness to landlord concerns and issues varies widely from place to place.I don't have any section 8 tenants.

I think you will also have many more repairs than are found initially. 8 years is a long time for a property to be vacant without major damage being done to the property.

The fact remains that the vast majority of newbies fail in a relatively short period of time.

The two major differences are that while you may have the same coverage on your structure, you typically have much less coverage on your contents and sometimes this coverage is limited to appliances or a specific list of items.

I just want to make sure I have an understanding of the 50% rule. 8% Vacancies6% Insurance11% Taxes11% Maintenance/Utilities6% Management8% Major ProjectsWith the remaining 50%, you subtract the mortgage payment.

I’m surprised that your CPA made such a recommendation, the vast majority of them would never do so.

But yeah it's for real, just factor in the majority of the services and companies he using to do all the aspects of the deal, he owns or at least part of them so he's making money all the way around.

Any major pitfalls or danger I should be aware of?