By the end of the project I took a small portion as my compensation about $28k (which is specified in the LLC agreement as a percentage of profit before capital distribution).

Problem is I found a property with 1 pic online, numbers look great online...actually has a tenant currently paying $650 which still leaves me about $300-$350 profit/month.

HML's, in my opion have a bad reputation due to the lack of professionalism, honesty and integrity of those who basically enter the arena with a sence of ruthlessness about profits driven by greed than any public service, not all, but enough to taint the barrel.Wearing a suit doesn't make you a professional, neither does a bank account, a college education or having an office.

Rents around $500 are where that rule seems to work reasonably well, so at $600 - close enough.total monthly gross rents / 2% = 50 times rents => 50 x 2400 = 120Kfrom that, subtract repairs: 120K - 50K = 70KMax offer would be 70K, so start lower.Lots of other analysis formulas that could be used - the point is to try to get a number you'll be comfortable with paying so that you are almost guaranteed to be profitable (can only be profitable if good paying tenants are placed in the units).

However, many times having a money partner means you have to split the profit.

Please have a profitable 2013 and welcome the the US.

2) If houses like this come on the market and are not worth buying a bit cheaper from the bank in order for your self to resell it for a profit, would it be a good rental investment?

So for that you better be sure to make a profit for the risk involved.

At the end of 6 months, the lessee can sell the house and should be able to make a profit after paying the liens against the property.Has anyone had any experience with a situation like that?

Here's a horror story: I got 50-lots through tax lien foreclosure (year 1997-2002), was going to develop them myself when some investors bought up all the other delinquent liens (1500 liens), and formed an HOA to develop the land . . . it worked out okay at first, I made a good profit selling some finished lots to home-builders, but due to the HOA mismanagement and the economy, I have about $1-million in HOA liens on my lots.