Even after a gross over estimation I could be making a very healthy amount of cash.Thanks again guys

The magic of time in a 'normal' or healthy market.If you want $40K a month, that is $480K a year in 'passive' income.

I purchased a C class duplex 3 miles from campus that is producing at a 12% cap rate on a $97,500 investment.

OK, 3/12 units are non producing so occupancy rate is 75% best case, right?

I would give my recommendation of the company things went as planned, we felt it was a better plan than letting our house sit for sale by owner all summer producing no income. 

My goal is to find income producing assets for retirement.

A very small percentage have been audited, and all of those had no issues with the audit because they were adhering to the IRS rules.These vehicles are a very effective means to take greater control over your tax sheltered retirement savings and diversify your portfolio into stable and income producing assets such as real property, partnerships, private lending and the like.You do need to become educated on the IRS rules, which apply equally to a conventional IRA but you just are not given the flexibility to need to deal with them.  

I may need a 2nd investor.What I would like to know about making this deal work:If I have $100k invested by one or two investors, what would a realistic or healthy deal on returns, equity, etc look like for the investor(s)? 

(This "short term rental" strategy is a little more hands-on, and volatile compared to renting your home for 12 month+ , but it can possibly produce more income compared to 12 month lease rates, especially in cities like Austin and in areas like Downtown).I know there are certain regulations for short term rentals passed in recent years in Austin so I would research that as well before going that route. 

You feel you have an excellent income producer.