Problem with that is I would have to have to take out an original conventional loan to start, then right away refinance and get double hit with the lenders fees.I know I will run into the same issue as before where the money is essentially locked into equity because of the small loan amounts if I move forward and purchase this now house for $65k. 

The acquisition fee is what keeps the lights on, so to speak.And helps afford all that time & effort during/between deals.✅ If you don't agree with the sponsor acquisition fee, you must first understand that sponsors do not share in the profits (most of the time) until the sale, because of a preferred return.Fees sometimes get a negative connotation...→ You pay fees for your 401K.→ You pay fees when you buy a car.→ You pay fees when you buy a house.Would you be willing to pay a fee for an awesome investment opportunity?

So in the best case renting is cash flow neutral (or slightly positive, like $100/mo positive) after PM fees, and -$300/mo in the worst case.

Understanding how to underwrite these deals and what GP/LP and Fee structure to use is crucial. 

I spent hours reading through other DST forums and came to the conclusion that it might not be the best option for me due to the lack of control, fees, and overall risk.

There seem to be hefty fees associated with that.

@Andrew Postell and @David M. ok gentlemen here is my takeaway from this is 1) I need to study tax code a lot and 2) the only way to mitigate his capital gains tax is probably going to look something like talking him into a master lease and paying him a monthly fee until the capital gains tax is paid for up to a previously agreed upon percent.

I talked to contractors and construction management companies and learned more about renovation in the last 2 years than I ever have, talked to multiple lenders - a few did some shady moves trying to charge me fees that are illegal (reported her to her supervisor). 

With that, we became the American Association of Private Lenders—and we began spreading the word.Finally, Some DefinitionsUnderpinning the concept of minimizing the use of “hard money” in our industry is a recurring theme of standardization—that the root of the issue is too many interpretations of what the same terms mean.We offer up the following definitions for discussion, debate, fine-tuning, and eventual consensus [last updated 5/9/2022]:Private lender: Any non-depository individual or entity that primarily originates business-purpose loans secured by hard assets, generally real estate.Hard money lender: A subset of private lender where creditworthiness is determined solely by the securing real estate collateral.Correspondent lender: A subset of private lender where the closed loan is sold to investors.Portfolio lender: A subset of private lender where the closed loan remains in the lender’s portfolio.Fund manager: A subset of private lender where, depending on the fund structure, the deployed capital is sourced by offering exempted securities to accredited and occasionally non-accredited private investors.Private investor: An individual or entity that seeks a return by deploying capital through a private lender or fund; the investor may or may not be named on the loan’s promissory note.Private money broker: Any individual or entity that acts as an intermediary between a borrower and a private lender without directly originating the loan.

There are folks who do turnkey differently (including us) where the headache of project management, finding tenants, and all of that stuff is taken care of without paying extra fees.