It didn’t fit our criteria at that point, so we never gave it a second thought.

Again, you'll need an excellent relationship with the seller. 4) Bank financing.

Or maybe another option which I haven’t considered which could be a good fit for my situation Thanks. 

I recommend analyzing the Internal Rate of Return (IRR), which takes into account all the ways a property can make money over time, how long you plan to own it, and compares it to other potential investments.There's a lot on BP about IRR.Cashflow positive isn't a must in every deal, as long as it fits your investing strategy.

Linda is correct that the only way to avoid the 20% down is to make it your primary residence, however on occasion you can find a lender that will allow you to purchase with 15% down but that is rare and your credit must be excellent.

That's an excellent point.

Exit strategy is an excellent idea to have in the operating agreement.

For example: Investor contributed 10,000, and will receive 11,000 as a lump sum after sale of the property, plus any interest at 9% APR if sale is more than 90 days after date of lending.To note: I looked in the BP file center and couldn't find anything that fit the bill.Thank you,Julius

You’d have to fit suitability requirements but once it liquidates, you can take the funds and do another 1031 back into a property that you can actively manage.

I see the formula now:ARV $XXLess Profit (20% ARV) $XXLess Close (10%ARV) $XXLess Repair $XX=MAO $XX.Then can always add in 'purchase costs' (eg cost of money etc) for greater accuracy, and adjust the percentages to fit.