As easy as this sounds, it's not simple and usually like pulling teeth.

Something like this as an example of a simple SFH purchase in PS with PM fees.$600k SFH purchase price (decent 3br/2ba with pool in walkable area)25% down 4.5% non-owner occupied loan rate = around $3000/mo PITI allinlet's say you can do 1% rule on $600000 place is $6000/mo in gross rents which would be awesome for PS ($72k a year, way above avg)$6000/mo * 30% PM fee = $1800 fees = $4200 left net to you Add in for STR you pay all the utilities - power, pool, gas, heater, AC (summer in PS baby!)

Investment Info:

Single-family residence buy & hold investment in Broomfield.

Purchase price: $150,000

Cash invested: $30,000

Sale price: $300,000

Investment Info:

Single-family residence buy & hold investment in Broomfield.

Purchase price: $150,000

Cash invested: $30,000

Sale price: $300,000

single family home - rented it then sold to ...

changes the equation quite a bit.Also, you aren't figuring out your expenses properly. it is not as simple as saying "mortgage is x, rent is y, so cash flow is Y minus X." what happens when the place sits empty for a month?

But if they have half of a brain, they know that there are going to be all the costs that I mentioned AND MORE; cost overruns, electric, water, taxes, bad contractors, and a few others I can't think of right now in addition to the simple %s mentionedThis is why you should never deviate from going over the 70% of ARV minus repairs AND you should do your own repair costs.

The owner is making it sound pretty simple but I get thinking if one thing goes wrong I'm in debt 600k after the land and board.

Apologies if this is a simple question. 

The goal is simple...get started.

There are many options but to keep it simple and the business well capitalized you could have all partners put the same cash in and just pay him for his time and labor as an expense to the business.