Hi BP,A deal that I'm currently working on has the potential of involving 2 separate partners, not including myself.

Landlord provides tenant (at tenant's decision) the option to limit potential damages by agreeing to pay 2X rent as lease break fee".

Potential upsides and downsides?

I'm in the process of researching the Lafayette, Indiana market for potential rental property investments.

My best advice for getting started is to learn to run your numbers thoroughly and then practice on potential properties that you see listed. 

Even longer answer: talk to an experienced accountant about potentially treating your lending as a business and structuring it along the lines of what you suggested.

Hello Everyone - Thank you for taking the time in advance to assist me with your input and perspective on a potential buy.

How do application fees work for rental units?

Generally, higher cash flow means more potential work and more monitoring of the property, two things you'll do much better if you invest near you. 

appreciate all the advice and I'll be following up with some of you to pick your brains as we get more involved in the due diligence and underwriting of potential deals.One thing I should have mentioned is we have a couple of relationships with a few private investors (family, friends, etc.) who have expressed interest in providing the capital if we find a deal that pencils.Thanks for all the feedback so far everyone.