Reality Check;Forget your cap rate and focus on the actual money.Your expenses will probably be in the $3500 per unit range - that's about $56,000 annually. yes you might operate for less but that is why it has deferred maintenance.Laundry income should not be included when comparing cap rates to other projects unless they also have similar arrangement.

All IRA rules relating to account ownership, tax treatment, timelines, and distributions still apply.IRAs are individual retirement arrangements, so there is no capacity to combine accounts held by you and your spouse. 

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.You are on the right track mentioning local REIAs--those are great places to start networking; I'd definitely suggest attending those meetings.

Thank you in advance for the feedback.Respectfully, VinceLike Leslie mentioned to fund this property in a LLC you'd need to be in a non conventional or non agency loan because the agencies (fannie/freddie/ginnae) require you to close in your personal name or your living trust (inter-vivos trust or a trust created while you're alive).The downside with DSCR loans is that their rates are 1.50-2.00% higher than conventional paper/financing and their points typically are around 1-2 points higher apples to apples (and sure there were minute periods of time in history where DSCR was probably cheaper than conventional but it was few and far between).The other option to fund in a LLC or entity is with portfolio loans from local banks but that will require you to have a long term lease arrange or have a couple years of tax returns filed for the STR property (short term rental property) to even be considered because they dont lend on properties that arent battled tested or currently producing income.

And for the seller with plenty of equity, a straightforward purchase could be arranged.

All of my tenants have better living arrangements than my parents did when they were young, and especially so compared to my grandparents.

I asked them to take reasonable steps to avoid a fire and made arrangements to deliver an additional fire extinguisher for the living room.Would you have done any more or have done things differently?

I would like to arrange for a fixed management fee payable to him, that would be extra income for him and an expense for me.

This seems to be much fairer owner-manger arrangement.

Let’s us know so we can arrange something and get together and discuss.Have a great week!