I'd try to find a property manager that can help you keep an eye on it and let it appreciate. 

Partner brings caliptal/down payment (passive involvement) and I do the management (active REPS activity).

I assume, I will have to open business accounts and use those to manage my business expenses and business earnings etc. 

In general, I agree in our market here in Pittsburgh "rent by the room" isn't a very profitable strategy and when we've managed for owners with this strategy it always turns out bad.

For me, it's a great blend of banking, bookkeeping and tenant management software.

The calculation takes more than just Rent and PITI - they consider other expenses like vacancies, management fees, utilities, and more especially for full-doc programs.

Any advice on managing this situation, reducing costs, or navigating the permit process would be greatly appreciated.

Franklin As long as you're looking at things in the long-term, screening your tenants thoroughly, staying engaged as the property management, and are diligent about increasing rents the maximum every year, you should be fine.

All money would stay in the company for repairs, management, buying new properties, and paying taxes if necessary.

I currently own and manage 3 duplexes near Indiana State.