It was a long ardous process.Here's part 1 of a 3-part series:https://www.biggerpockets.com/forums/55/topics/690349-from-bankruptcy-to-1-000-units-part-1-thru-the-dark-tunnelHowever, when I transitioned to hotels, I found out the better route to scale up is to joint venture with the right partner.So, for you...you have 2 choices:1) You can do everything yourself - if this is the route you choose, start with a 4-family where 1 unit needs work and the three units are occupied but their leases are about to expire (maybe in 3-6 months). 

However, if they create a company to manage properties they own jointly with other people then it could get more complicated and depending on how they organize the PM entity it may not be legal.

I generally use Joint Venture capital to fund the transactions.

My area of expertise lies in various real estate investment strategies, including the BRRRR method, raising capital, and engaging in joint ventures.

Actual numbers post report:5 year property = $42k15 year property = $120ktotal building cost = $204kActual Tax Return ~Married Filing Jointly~$82k in W2 income~$150k in self employed income netting $52k in K1 income~$11k in capital gains from stock market investments~$60k in rental income from Schedule E and $215k in depreciation expenses ($162k from cost seg bonus deprecation & the rest from first year costs / capital expenses)We ended up with an AGI of -$80kNuances & Thoughts - Most frequently, Cost segs are focused on high income investors. 

Consider options like Joint Tenants with Right of Survivorship (JTWROS), which allows automatic inheritance but no removal of a living owner, Tenants in Common (TIC) with share flexibility but potential non-family inheritors, or a Lady Bird Deed (life estate deed) for your parents' lifetime usage and automatic transfer to you upon their passing, offering both flexibility and long-term security.

Consider reaching out to experienced investors who may be open to joint ventures, where you contribute sweat equity in exchange for a share of profits and learning the ropes.

Also absolutely agree with @Kerry Noble Jr about joint venture as soon as I have a truly motivated seller I will be reaching out to the network I am currently building to help guide me through the deal for a share of the profit.

Be careful with informal joint venture and partnership structures. 

I'd use my $125k + hard money (home purchase and renovations) OR use my $125k + Joint Venture partner (home purchase and renovations).