You will negotiate with him on he gets his principal back along a time period and perhaps related to a specific percentage of yield for the use of his capital.

You would have to meet the 2% rule and get lucky on the 50% guideline to meet your objective but it is do-able and without any appreciation The rub is that in order to sustain that level of growth on a compounding basis you need to re invest the income at the same rate and also you need reserves.

I will probably just be a lurker for quite a while, but wanted to make an intro, and hopefully I can contribute some useful info related to marketing and sales.

I'd much rather they go to a friend or relative.

It's generally as cheap, a heck of a lot easier, and faster just to have someone do it.As for bookkeeping, collecting rent checks from my P.O. box, answering phone calls... those are all relatively little time with big rewards.I also outsource the tenant placing... 1/2 months rent ($200 - 300) is much easier than driving up 3 - 10 times to show the apartment.

You can imagine what they go through to make the low income units looks good on the outside in order to minimize the the objections of the $1.2M buyer.

Those rules deal with exemptions related to the amount of capital and number of investors you intend to obtain.

some good related reading:http://www.biggerpockets.com/forums/52/topics/73627-setting-rent-price-for-section-8http://www.biggerpockets.com/forums/52/topics/62388-section-8-basicsThe adjustment to market rent is what would concern me, since the Housing Authority will make these adjustments periodically, and that could lead to a reduction in your expected rents.

If I were to drop the day job I have some RE related business ideas that I'm dying to pursue.

Bobby S,Everything will be prorated to the portion that is related by square footage.