In practice, it's really not so much different from mezzanine debt.The preferred equity strategy is a great alternative to debt financing in cases like yours where you already own the property and don't really want to go through the process of refinancing.  

That why it is better to specify the intent in the contract verses relying on what is common practice, typical, etc. which can always lead to disputes.

I don't really have a lot of income as of right now, although I am willing and am currently practicing not spending any money on anything that isn't absolutely necessary, it will probably take me some time to save up a substantial amount.

How about practicing your answers right here - and your analysis of an example property deal?

Hello BP family....I am here to seek advice and hopefully get some best practices from some of you that are already in the business of buying and selling homes.  

If damage was caused by the tenant, you can start assessing for damages as soon as you find them.Ignoring tenant repair requests is not a sound business practice, it could also backfire on you and cause a delay in the eviction process.

I have done all of this and were I to do it again, I would begin with the practical basics - read the law (NRS 86), find a registered agent who is knowledgeable in and friendly to REI, a lawyer also experienced it and friendly to REI, and financial - tax professional(s) (at the least an enrolled agent and a CPA) who are also very familiar with and friendly to real estate investing to see what services they might best be able to provide you.  

I feel like I learned a lot from you all, very practical advice.Cheers,Jake

Hi, yes, this is an acceptable practice.  

Is it possible/practiced in the state of Alabama (or those other non-rebate states?