You might want to separate the asset holding (passive) from the operations (active) side.3.

Here’s a deal in WACO that i want to place an offer:CLASS - C/C+Units - 14 + duplex = 16Mix - 2 BED 1 Bath Rents = 575 averageCap rate 9.2 % actual (Or So they say)Previous owners bought it for $545k List price = $680KAll bills paid communityTotal operating expenses -$55kNOI = $62KCash flow is around $2.4K / month100% occupied with rent roll6mins from a a good university Numbers check out on paper, value add opportunity is also there.

But it's not that simple. 

@Marty SummersI have not but many of my clients have invested their 401k plans in their own real estate operating company business through the ROBS 401k plan.

I own and operate these homes myself and I do not and do not encourage you to focus on that market.  

I don’t think the owners/operators were looking for your kind of response, especially with the positivity they seem to show on a regular basis.

My opinion is coming from buying multifamily complexes 100+ units point of viewIf passively investing, I would look for:-Strong operator-Strong team around the operator ex.

Now, I know the object is to keep expenses low and profit high, but could a few simple additions increase your bookings?

Speaking just as an investor, I still would shy away from a HELOC for the simple fact that I am not certain how quickly I could pay it off/down. 

As of now I'm working with my junior realtor (close friend & new to the industry) to source a property where the rent income will be able to cover debt service and operating expenses all while living in one of the units (therefore, removing the rental income of that unit from the equation).