Im guessing he should be involved in every step of the way, huh?

Or like the others said it may be wiser and safer to involve the authorities for this one....Either way let us know how it turns out Joel....Godd luck,Chris

To the best of my understanding it would involve payroll and all the paperwork involved with it, ie taxes etc.If I were you...

I have been involved in real estate casually for several years, always as a side thing as related to our family goals at the time.

But if it's a sub 2 deal, I like to make an appearance to make sure everyone is on the same page and fully understanding what we're doing.Also, if it was a particularly good deal for all involved, I might come snap a picture or two and gather some good feedback for the "testimonials" page on my site and/or newsletter.

I own several rentals and don't have an LLC, DBA, license, or office and I have a regular full time Job that doesn't involve RE.

I've been involved in real estate for over 40 years and this is the first time I've ever thought of this situation!

My question is should I put DW & GD in or is there to many maintenance issues with these items when renters are involved?

I can see converting to an in-unit electric furnace, but would have to check on the cost involved (yeah, another bump to rehab cost).

Now the cap rate becomes 7.17%, cash flow = $310/mo w/o mgt co. involved, and cash on cash is 9.28%. (25% down pay + $4,000 closing + $1,400 upfront cost, total upfront cash = $40,400).