Tell them to take the $150 or show you receipts for their expenses.

It only makes sense if you plan to pass on real estate.

i am planning on talking to real estate lawyer and real estate cpa but wanted to see if there were any thoughts from the forum. thanks!

To me it looks really solid but the only thing that matters is your business plan and how you set up your goals that will determine if it is a good deal for you. 

I can break everything down from NOI, standard operating expenses, and cap rate to assisting with an exit strategy. 

I am planning to get my first investment house; I don't want to use my savings, so I have an equity line of credit for 50K and got pre-approved for a loan up to 300 k? 

It's going to be tough, stressful, and expensive. 

If you are planning on living in the house, 5% down is the lowest you can go.I would also encourage you to start tracking how you spend your money and see if you can cut spending to save more money or find ways to increase your income.

Depending on the exact scope of your intended business plans speaking to an attorney or CPA might also be recommended. 

New plumbing, electrical, well, - shouldn't have any cap x expenses for a while!