The Private investor is also the realtor and will not have anything operational to do with the project but will be listing the project for sale at 6% once it is ready.    

Contractor, Lender, Realtor, Lawyer (Core 4, right?)

To clarify a little though, I'm wondering what expenses (perceived and/or real) the appraiser will use on the liability side of things to arrive at net operating income. 

@Phyllis Davenport OK I just noticed you are a newbie; let me add that it is risky and even experienced operators can lose their shirts!

A bit about myself and my interests: I am an aspiring REI from Atlanta, GA with a multitude of focused skills; including copy writing, intermediate marketing, product development, website customization, graphic design, video editing and audio mixing/ editing.Currently, I own and operate a company where we connect and develop web based solutions. 

In addition to what @Brian Burke mentioned, I would check the PPM, SEC Reg D (assuming it was Reg D filing) and operating agreement to make sure you can swap out investors. 

Don't buy in the roughest neighborhood in the urban core.

Thus, if you operate in New York, you may record a conversation or phone call if you are a party to the conversation or you get permission from one party to the conversation in advance.Security cameras are treated as phones for recording purposes.

Whether it's Memphis or any other US market it is first important to do your due diligence on the market first then find your operator!

In order to only pay Indiana state income tax and not CA, we were going to create an administrative management company to operate it in CA that would handle our CA employees/office/ marketing operations, etc... but it looks like there were some changes to nexus laws that focus on point of sale to source the business.