@Troy Schwamberger you are correct. the 1.2x is a bank standard for lending, even if you are at 1 and not bringing home money, you essentially are making money. your tenants are paying for the house ( adding equity) the bills are all being paid for to run the property, pay insurance and taxes. you also get to depreciate the property and if you do any improvements to the property or repairs that gets deducted or depreciated while adding to the basis of the property, if it is a capitol improvement.

However, if my understanding is correct, we could actually sell, without the time constraint and rules of a 1031 and still not have to pay taxes on the event, because of the fact we occupied the property as our primary residence two out of the past five years.

Your correct, my market is very hot.

@Graham Richard Anderson Search engine optimization and Google Adwords are by far the best lead generation methods.

Is that not correct?

I would like to supplement my FT corporate income with this method of real estate investing.

Assuming my investment was paid for in cash and also assuming arv numbers were correct.

2) If I understand #1 correctly, after the investor receives the $3,000, we then split monthly income 70/30.3)When sold, he gets his $50,000 back, plus 70% of appreciation4)Management fee of x% of gross income on the year?

You can flip anywhere as long as you do your math correctly. 

Or are you more reserved and methodically and want to patiently start to invest?