I am self managing these units and enjoying it at the low level. 

- If so, at what tax rate do I pay taxes - at the personal progressive income tax level that US citizens would pay or a different rate?

Is the 2 level or 3 level townhome?

So wrong, and so sad, on so many levels.

As @Maxwell Manatt points out- does everyone know their role and what is expected from them - because unperformed duties do not raise someone to the level of a sponsor/issuer and may create the presumption that the specific person is indeed an investor who actually purchased a security. 

If you lurk these forums for other discussions about and see lenders talking about it, then you know at the company level who offers it.

Everyone has different level of comfort and different strategies works for different people.In general, Raleigh is getting hard to get a good cashflow and prices are pretty high.

Are you happy with that level of growth, I am curious as to what your expectations going into it were.

They currently own a 5 br/2ba house in which they rent out but on the same property they have an apartment building in the back 2 br/1ba and on the top level n probably can turn the bottom level Into 1br/1ba.

Is it crazy for me to purchase this building, even though cash flow checks out, due to the level of maintenance/upkeep/rehab that will be needed?