This one is a fixer, and in a fantastic neighborhood, so there is profit potential.

How do you overcome the 180 day limit within a year and be profitable compared to long-term rental?  

Another protip: If you are in a competitive market, deals are harder to find however if you do find a deal, someone will be much more likely to split the profits and show you the ropes if you make a friend in the industry.

I am currently a sophomore in college going for a double major in accounting and finance.

I would express the concerns not only around the liability, but unless you are willing and able to sell a foot of the property to him, you can potentially have major issues when trying to sell the property.

Since the major benefit of the LLC is asset protection,  you won't be needing that much in the beginning starting out with our own properties. 

We just completed a total gut in the West end area and the total cost was 130K for a major rehab.  

@Sasan Nemabakhsh I can lend directly on the construction of Assisted Living Facilities through our HUD 232 program: 40 year fully amortizing plus construction periodMax LTV:90% of HUD Replacement CostSNF/ILU: 80% (For Profit, 85% (Non-Profit)ALF: 75% (For Profit), 80% (Non-Profit)DSCR: 1.45xRate: 4%-5%Non recourseAssumable We recently closed a 176-bed SNF in Detroit.

To make a strong offer, you need little to no contingencies, quick closings (typically), large EMD, POF, and an ability to create a spread for profit.

When it comes to pre-foreclosures and REOs, I just want to make sure there aren't any major pitfalls that I need to be aware of.