If he got a job somewhere else, we would move, but I'm concerned that we wouldn't be able to rent out a house in OC for enough to cover the mortgage + savings for cost of repairs- not to mention cash flow.  

We purchased 2 turnkey properties in the Kansas City area in 2016 and have so far put almost another $30,000 in repairs that should have been done by the flipper. 

I am looking to partner funds with friends and family in order to lend to a contractor partner, either as straight debt financing for acquistion and repair costs, or a combination of debt and equity partners, participating in profits after resale.  

Make sure the fee in the lease is enough to repair all the carpets. 

If you found it to be defective... not bonded, grout popping etc... thats a repair request. 

Our relationship improved and he started to do chores around the building including gardening, lawnmowing, minor repairs all saving me money. 

Also, what are you factoring in for maintenance/repairs and cap ex?

they sound like they may need a lot of repairs if they are appraising for $40k in an area that sells for $70.

They may keep a few hundred in your name for small repairs.

What type of repairs does the home need and how much are the repairs (breakdown the amounts for an easier decision process).Here is what you could potentially entertain if the numbers work: take the house "subject-to" and do a stack and wrap.