And, needless to say, I'm a little worried about my equity.

It depends on how you split the revenues.If the house is free and clear, you two should decide if you get to bank all the money after paying expenses (taxes and insurance) or if you have to split it somehow in favor of your rehab work or just 50/50 the whole time.Also, if your friend decides to sell it year 2 or 3, and you still haven't recouped your rehab funds, do you spit the proceeds of the sale?

The investment in the Qualified Opportunity Fund must be an equity interest (including preferred stock and special partnership allocation), but not debt.4.

Is your desire to finance 100% because it genuinely works and makes sense  or because you don't have patience and discipline to get a down payment.If you finance 100% and are in a position where you need to sell it sooner than later but have little equity, you will probably have to come up with cash to sell it off after all costs involved with selling.

I understand Massachuetts can be a difficult place for landlords because of laws that are highly favorable to tenants.Review the lease/rental agreements that the tenants currently have.

Hard money lender to get you in, then a refi to pull out equity.

I do currently have 50k in home equity which I plan to use for down payments and some repairs on my first propertyMy question is, is it profitable to purchase commercial real estate to be used as a rental property in smaller towns?

My strategy is very common, but it's to use HML to buy and hold 1-4 unit homes then refinance and use equity to purchase another.

The majority's opinion is that leverage is what allows you to grow your portfolio and equity, so get as much debt as possible, but of course watch the terms and cash flow.Once you choose your religion, assuming you choose leverage, you're looking for the funding.

I foresee a problem tenant with an equity stake.