When you are doing deals with a partner, it is (as a general rule) a very good idea to be set up as an entity.

Other thing to be aware of is secondary market has some strange rules about reserves once you reach anything over 4 units. 

@Patrick Daniel thanks for the encouragement. i think the competition is increasing because as we approach the summer time, it'll be difficult for me to be competitive. i think i'll be more aggressive come sept-oct. that said, i know i can't use the traditional 70% rule since i'm not going full rehab and rather going the route of livable+small rehab.after hearing a few podcast episodes of bigger podcast, the double close made more sense and jotted some notes. the wholesaler/buyer's list route will require more research on my end especially as it relates to those with a conventional loan. great point to bring it up!

Unless you have the actual financial data to back your analysis you would be better served staying conservative using something closer to the 50% rule for expenses.It could be a possible deal if you could have a lower Purchase price and/or room to raise rents.

Boeing once had their headquarters in Seattle and determined that because Seattle abused the company by taxation and restrictions, Boeing moved to Chicago claiming that Chicago was the "center" of their market.

I plan on putting down new rules and cleaning, painting, and buying an o zone machine for when people move out.

Howdy @Jason HowellI strongly recommend you stick to using the 50% rule for expenses so you stay conservative with your analysis.  

Are there any special rules?

They most often need to get there engineer out to the site, check city zoning, city restrictions, water and sewer access ( this varies wildly from site to site). 

@Jeff Goff The loan to your LLC will count in the numbers of financed property rule that Fannie Mae and Freddie Mac have because you own more than 25% of the LLC so its going to be counted as a financed property.