You pay actual hours worked with no taxes/unemployment/insurance expenses, just straight time.

I won't make any profit on it, but he's paying the bills and our hope is that he will buy it from me in 1-2 years or we'll keep it as a rental and he'll buy something else.

Looking for some advice on our plan to get started with our real estate biz.

You want to compare this EBITDA across all other bed and breakfast businesses. since you already own two, you have an unfair advantage in that you can compare this one your considering buying with yours, and see if its a fair price you are paying. you can also breakdown your expenses and compare them with the business your looking to buy to see if you can force appreciate value by creating more earnings. 

No General Contractor wants to do a remodel with the residents still living there....they will charge you more (they probably will not show it, but the prices will be higher because of the huge PITA factor and increased liability)I would wait until you have completely moved out and then just give them the house empty and ready to roll.....But you can get a Scope Of Work going and start getting bids...even plans and permits if you're going that far...

We "lose" money on a cashflow basis, but completely comfortable with that as this is more of a 2nd home that renters help us pay for.

There is an $80,000 assignment fee so we ended up paying a bit more but our only down payment towards the building looks to be 30k.

That’s about what I pay, and Proper is fantastic for STR coverage.

Hopefully you did not pay too much for the dirt. 1 acre is optimal these days because of desired double to triple drive thru for QSR.It can become a problem because if they make the building smaller you get less rent but they do more sales.Example a QSR used to be 3,000 to 4,000 sq ft but now instead wants double drive thru's as not many go inside for fast food like pre-covid.If you get 1,000 a foot less at 30 a foot you just lost 30k NOI and now at 5 cap example paying all cash NNN once developed you have lost 600k value.It can fine as long as you do not overpay for the land.

(Also, the developer is reasonably experienced + wealthy and has personally guaranteed some of the existing development projects - but wants to move away from that)I'm also planning to get some equity in the JV / the broader development company (much less equity than if I were to be a pure equity investor of course). because I do think this could scale to 300-400 homes / yearOf note: These homes are modular in nature - so are faster to build and margins are projected to be attractive.My questions for you all is:Have any of you lent to development assets with cross-collateral from cashflowing properties like this?