If your rent is $1600 per month that equates to $530 per year lost.

Setting a strong foundation for the first few years is definitely part of that equation for long term success.

Consequently, your $1M land contribution would "earn" 50% of the total 70% Investor position.These variables need to be determined in order to get to set the % of ownership your land earns in the investor entity which you would equate to your land value / by the total equal required.

The Taxable Value is uncapped and equated to the SEV upon a sale or other transfer of property ownership, with limited exceptions.There’s one more complication!

@Robert E Bogino - Let's hope this one works out for the best, but in the future......definitely factor that into the equation before you make an offer and decision.

@Jay Hinrichs @John Semanchuk It definitely was factored in to the equation with the cash flow projection that I made earlier.

Then adding fix and flip to the equation.

Meanwhile, the real property side of the equation is $400 and you take off 30% (if tenants pay their own water and sewer) and you get $280 per month profit [about 6 times more than the personal property division is making].Here's the trick.

The other part of this equation with be your debt to income ratio.

You will be negatively cash-flowing $300/month BEFORE you factor in the other parts of the rental property equation, vacancy (6% in Austin), capital expenses (water heater goes out, need a new roof, etc. usually 5%), repairs and maintenance (usually 5%), and for now we will assume you will self-manage....Vacancy = $150/month, CapEx = $127/month, Repairs and Vacancies = $127/month + Monthly Mortgage of $2,850 give you a total overhead of $3,240/month.