If you structure it via equity rather than debt, you can get very creative with the entity's operating agreement and you can allocate more depreciation to this investor to help him with his tax breaks.

I own a small but growing logistics company that is requiring less of my time and would like to focus that energy on expanding my portfolio into REI.

Once the developer pays operating expenses and the senior debt payment all income must go to pay the fixed coupon of the mezzanine debt.

Is there a finite amount of time that the units must be rented for before an appraiser can use an income approach based on the net operating income of my property?

.** Purchase **Purchase Price: $ 75,000Purchase Costs: $ 1,500** Cash Flow (Monthly) **Rent: $ 850Vacancy: 8% (-$ 68)Expenses: -$ 338Net Operating Income: $ 444Cash Flow: $ 406** Returns **Cap Rate: 7.1%COC: 7%Rent to Price: 1.1%Gross Rent Multiplier: 7.4

We operate on envelopes and going to the grocery makes you reprioritize if you really need that $12 bag of shrimp or if you could just sub in some leftover chicken from the freezer, or if you take the time to cut a few coupons because that $6 you saved will allow you to splurge on a bucket of ice cream for the kids.

(day to day operations)Person 2:  Master contractor, well versed in every aspect of residential maintenance/remodeling, more flexible schedule to be able to visit properties and make repairs/upkeep.  

What does the operating agreement state about buyouts?

You wouldn't ask a podiatrist to operate on your back just because he has a license on the wall...and, you wouldn't take the first back surgeon you find either.  

He operates in South Suburbs.