Spread" is the concept where you try to earn a Return On Investment (ROI) that is higher than your Weighted Average Cost of Capital (WACC).

Treat your partner's money like you would a loan; it's a cash outflow, but it gives you the capital you need to make the deal happen.

I have a really low credit score, no capital whatsoever.

.- The CAT tax applies to rents received in the normal course of business although it does not apply to the disposition of capital assets.

Have some deals but the old story no capital.

85K is not alot of money you know...If its all you got, you are better of building capital by flipping houses, when you have 500K, start buying to hold using leverage to buy as much as possible.Do this, you may be a millionaire in >2 years.

Long term capital gains (gains on investments of over one year holding period) are taxed at 15%.

I mean if they have venture capital funding then it's safe to say that they have very large plans and they have convinced at least a few people with big bucks that they can do it.

So yes he will earn a profit, but if you don't have cash then you have to increase your capital base in the property (either through another loan, or by adding equity/cash to the equation).All of that being said...

This takes very little capital as long as you search hard for the right deals (i.e. no money down, very little work to do to the home, good market for rentals).