In small college town with high rental demandAsk price 745kGross rent: 9750/mth 177k/yr     (differed maint properties with potential 200/mth per unit increase once renovated) estimated reno (190k across portfolio)NOI: 91,475/yr   (12.6 CAP)    (includes tax, ins, listed maint for past yr)     After reno NOI 127,475/yr   (14.6 CAP) Deal info:    - Owner finance 745k 20yr at 6% 20k down minus deposits (~13k)Cashflow  = 2100mth     (self-managed) (self maint similar to the previous owner)By this alone, 2100 cash flow added per month, it will put me at my financial freedom number of monthly cashflow is equal or greater than my families spending amount.

Collaborative partnerships often lead to exponential growth ('partnerships equal rocketships').

I grouped all the random stuff I bought throughout the year for the rentals (everything from garage door track lubricant to disposable work gloves, etc, etc) into general materials and split equally between the 6 units.

Your 50% value would need to be equal to or greater than the value of your relinquished properties (same with the debt that was paid off if any) @Dave Foster can provide more guidance. 

if this person truly has no assets or whatever assets are with Stephanie ( assuming the wife) and your hoping to get paid back  then the operator ends up defrauding more people to try to pay back the original ones and it becomes a big Ponzi also in those cases like Madoff there is crawl back.. people that forced a payoff early can be asked to give the money to the trustee to be shared equally MILLIONS were clawed back in the Madoff case. 

BUT WHEN YOU LOOK  OUT THE COST OF ONE STEEL PREFAB HOUSE FROM CHINA THAT IS FOR EXAPMPLE $10,000 WITH ALL INCLUDED AND THE SHIPPING EQUALING AROUND ALL TOGETHER LETS SAY $25,000.

And, this should go without saying, but always defer to Fair Housing guidance, ensure you're treating everyone equally, and keep diligent records of all applications for 5 years.

If management skills were equal, you would build value much quicker in a class C and D area because you are able to force appreciate more units for trade into more or better quality quicker.For reference, without going into exact door count, I traded a few A and B assets for C and D assets to expand door count.

Downside equals Expense and they can be stolen easily.

If they are VERY professional, they will have their processes in writing as verification that policies are enforced equally and fairly by their entire staff.6.