Some investors walk away with a false sense of security and a lot of unnecessary overhead work and costs. 

Its a low income neighborhood and the tenant had some financial hardships in the past which I have agreed to overlook in exchange for last month's rent up front (rather than collecting just the first month and a security deposit). 

If you do a good job, you're called a top performer, and you get a certificate.

You mentioned a promisorry note but you did not mention a mortgage (or deed of trust) to secure the note.

Managed to secure a pre-approval that can allow me to purchase up to 350k with 25% down payment.

But, as always, an attorney well versed in securities law is going to be your best asset.

I’d allow him under one condition .. he signs a document stating he is doing this all on his own free will and expense knowing he won’t get any money or credit from the work he performs now or in the future and the work must be pre approved by you first .

.- Capex: no matter how many deal analysis I perform with the BP rental calculator for 5-30 units, I usually end up far from the asking price.

Would love some feedback on whether a performing note would be the correct option for me.I'm in the process of opening an SDIRA. 

One concern I have is the tenant turn over process and how best to handle the inspection (security deposit), cleaning, keys management, and potential showings for new tenants.