That's where your paid saleperson comes into play... they don't get a split they worked for nada on that property, broker is still compensated 1% for his license / insurance.Unless you are trying to pull money away from the rehab entity for tax purposes I would stick minimizing the cost rather than getting a return check (which is what we do: we are structured across 3 companies: rental, construction/flip, and brokerage). 

Stay away from the “guru” sales-pitch events - they rarely increase your investment knowledge, they merely empty your wallet!

Given the length of time he's been operating in the local area and his positive reputation I'm prone to believe the numbers he's giving in his pitch.

Stay away from the “guru” sales-pitch events - they rarely increase your investment knowledge, they merely empty your wallet!

How do you plan to minimize theft, vandalism, illegal dumping, etc.?

Vacancy is a big costs that most newbies overlook or minimize.

If I never asked for that deposit right off the bat, my expenses might have been very minimal over the first 1.5 years.

There's a guy from Merrill Lynch that attends one of my networking groups pitching exactly that.

I attended his seminar for $1500 in Nov, 2016.As a ticket to his 3-day event, I attended his 3-day event in Dec, 2016.Never got a chance to see himself, but bunch of sales pitch guys.NO system at all but sale of $40K VIP Bus Tour.Let audience BE AWARE.

The fines could be minimal.