Hello,@Nathan Lilly.Congrats on going to College.

@David Wales Is this still ongoing? 

If cash flow stagnates or goes down and repairs increase you could be in an ongoing loss position with debt you cannot get rid of.When interest rates rise lenders tend to bring out new loan programs that buyers want to purchase in the market.

We are planning on going back to the REO bank and asking if they will let us fix the furnace and also engaging other lenders to see if they will do escrow...

Find out what is important to the owner- on-going cash flow?

If every member is contributing to the ongoing management of the business in some way, you should be able to avoid the hassle of SEC regs.

On my properties I always count those as operational because they tend to happen every few years.Also, they have new appliances in Capex which makes sense to me but that tends to be an on going thing in older apartments so it seems like something needs to be reserved out of the NOI for that.

We both plan on going into business together and want to start investing as soon as possible and gain real life experience.

Am I right that, at the moment you are out of pocket all of your original say $60k, and ongoing negative cash flow since then?

PM  is a tough business and many turn key companies engage in it for on going customer satisfaction as a big part of their after care.. and I agree with you unless you can scale PM I would not do it personally for 100 a month.. but they do make more than that they get a lease fee and mark up on repairs  Just like all PM companies get.