students deserve nice places to live. we aren't trying to be slumlords but i do realize that students probably have slightly lower expectations than other types of tenants, so i feel we wont need to break the bank in the level of finishing details like we did on our own home but we will provide housing that is clean and safe and attractive. also thinking we can use some creative materials and methods to make the units party-proof. maybe we get lucky and find some long term professors or grad students and don't have to do annual turnover on every unit. even so, i budgeted 8% for property management after watching david greene's webinar yesterday.the heloc would allow for an easy down payment and a nice buffer for rehab, and i have 750+ credit score and good wage earning history, so i think a conventional loan should not be a problem to obtain. a cash out refi might be an option on the horizon if we decide to really crank a proper rehab but the units (from the pictures i saw) are livable as-is.should i be more specific here on the address/market to get better help?

If you do not need the money, there seems to be an upside, and you do not have a place .... yet to put the earnings from the sale.

Other wise.. if you want to earn money in real estate get a license and go to work on a high producer team and GET PAID to learn ..

Just with the S-corp its $40k of earned income and $60k of distribution, in your example. 

We both enjoy our careers and have no plans of leaving.

Here in our market I'm very reluctant to pull the trigger on 1 bedroom multifamilies, not because there are bad tenants but because the fact is that as of right now with current prices of homes and the current growth in rents... it'd be very hard for a single person to earn more money to keep up with the pressures of price increases to pay off their monthly payment.

Another way to look at it once the property is acquired might be I earn $750 per month for 4 hours or less per property so about $200 per hour.

With your ownership you can: get a fraction of the rental income each month (that there is income made), use the profits to earn more shares of the property over time, and/or get discounted rates to the property as/via AirBnb rental.

Wishing you luck in your REI career!

You will lower your taxes you are facing from an all-out cash sale and convert your management into "mailbox money" where you have none of the management headaches, but still get monthly cash flow with a better interest rate than you can earn anywhere else right now with 0% interest.If it were my portfolio and depending on the size of each individual note I might break the notes into pieces and create multiple notes on each property.