@Colleen F. yes the expense of water was a consideration, but the rent increase more than compensated.

What are your thoughts on compensating brokers when working off market properties?

Let’s look at an example of how each would be compensated on a deal.

Work with a broker.I'm not licensed to do VA loans in CT, but happy to refer one to you that understands what you are trying to do Note: I do not get compensated for referrals to other mortgage brokers, nor do I receive any compensation in any form for this information.

What appears to you to be profit is just compensation for your time.

  - If you are going to be doing the "leg work" that involves flying/driving to said properties in the Midwest, building a team, and overseeing the acquisitions, rehabs, and rents then it should probably be structured to compensate you more heavly - If you are doing the Long Distance legwork of building a team in the midwest market you guys select and analyzing properties, yet your team on site will do a lot of work for you and your partner . . .

If there is an accident at one house and the victim sues the LLC, the most compensation that he can get is all the property owned by that LLC...just one house.I cant see any benefit of having one LLC own multiple houses when, as someone else pointed out here, the cost of an LLC is $125 and potential downside is the combined value of all the houses.

Thousands of homes in TX, LA, & FL are dealing with flood damage right now that are not in flood zones.Workers Compensation coverage if you have anyone on payroll, any subcontractors that do not have their own coverage, or if you have any Statutory employees (most common would be realtors).Business Auto may be needed depending on the ownership, size, type, and use of the vehicles used to service the properties.Equipment coverage may be needed if you have Tools and Equipment you use to maintain the property such as Tractors, Bobcats, power washers, generators, etc.Builders Risk policy could be needed if you are renovating a property before renting it out.Hope this helps with some possible policies you may need.  

Traditional VS High MarginIf I work, I like to get compensated for it. 100 dollars a door does not work for me.

What roles will this person play and how do best compensate them for their time, knowledge and advise?