A clear operating agreement from the start is key to keeping on the same page. 

I know if I were to send an operating agreement to a lender that reads "LP member will receive return of their capital and 20% annualized return" they would not approve the loan.

And we were operating at scale, so we had the luxury of riding a float for such.

Alt lenders will normally be higher on fees, rate and perhaps leverage at time of close but that's not always indicative of cash required to operate. 

Are you intentionally looking to outsource the management and day to day operations to a management company versus self-managing? 

A good rule of thumb is to keep 3-6 months of operating expenses in your rental account as a cushion.Once you’ve got that covered, you can start investing the excess.

My point is even some experienced operators doing more extensive/sophisticated value adds are struggling in this market. 

There are also additional costs of operating and maintaining an LLC, like separate bank accounts, annual report filings, tax filings, etc.2.

In fact, there may be other home service opportunities with quicker growth potential worth considering.Additionally, be aware that in Texas you’ll need a broker’s license, not just a real estate license, to operate a property management business.

Missy is one of the top 10 turnkey operators in the US..