Depending on how flexible you and the kids are and what your custody arrangement is, you could even use the kids rooms to generate revenue when they are at Mom's.

It was arranged that the interest would still accumulate.  

If you have any questions as to the type of cleaning we expect, please let us know.Please don't leave anything behind--that includes bags of garbage, clothes, food, newspapers, furniture, appliances, dishes, plants, cleaning supplies, or other items that belong to you.Please be sure you have disconnected phone and utility services, canceled all newspaper subscriptions, and sent the post office a change of address form.Once you have cleaned your unit and removed all your belongings, please call us to make arrangements to return all keys.

I have partnered with, and have also mentored inexperienced aspiring RE investors in the past, but those arrangements were mutually beneficial, and the partner or mentee brought significant value to the table.Good luck out there!

Or does this arrangement work fine for most tenants. thanks.

IMO, any long term arrangement that ultimately causes title to be transferred will be a disguised sale and financing arrangement, call it what you will, if it walks like a duck, quacks like a duck and in the end you have roast duck on the menu, it's a duck!

Do you think it make sense to arrange a local contact/manager?

Unfortunately, I don't even have the 10% down I can make arrangements to swing $5k down at this point.

Yes I have considered but it doesn’t really work with my living arrangement.

(Trump does not use anonymous C corps - he has TRUMP in big letters on his buildings because my understanding is his attorneys use this very same technique)So the liens that strip the equity in your properties are not fake loans, they are created to truly capitalize a legal entity, hence the "economic reason" that holds up in court.Look it up on line and you will see there has not been one federal case challenging such an arrangement provided your liens were recorded "prior to" any lawsuit being initiated or filed against you.This structure saved an acquaintance of mine millions in a lawsuit on an apartment building in Chicago, where the litigants tenants wanted to slap him with punitive damages in the millions, but could not because there were no equity and if they would've won and gotten a charging order they (the plaintiffs) would've been stuck with a phantom income tax bill based on IRC 77-137Pursuant to Revenue Ruling 77-137, the IRS requires the judgment creditor in possession of a charging order to pay tax even though income was never distributed!