So even if it does go well at first, it may not always, and you're likley best off to have residual income from another source til you work out the bumps in the road.For some people it may not be practical but I find myself in the perfect environment for a little RE Investing here in CT.

All of this after I spent about $70,000 in massive improvements.

You do not want to a lose a good deal because you made the deal too complex for the other side to understand.Everything should be considered and there are many ways to improve a deal.

Using MY numbers, the interest would be $1561 on an almost 4 year loan. when you make improvements to the property like this, could you raise the rent?

Are you going to make any upgrades, repairs or improvements?"

I plan on leasing the property.The down payment is being funded by my partner (father) and I will be funding appliances and whatever random fixes or improvements the property will need before and during lease.I am meeting with a lawyer later this week to setup an entity.I need help understanding how purchasing a home through a entity works.

As an agent, by law or by market practice, you can be required to put a formal indication in all of your advertising that you are an agent.

Beside the "practicing real estate with out a license" you can be charged with bank fraud.

Among the problems with properties in this price/rent range is that they don't appreciate, they're management and turnover intensive and there's not a lot of chance to "improve" them and raise their value or rent.Before jumping into any more I'd look at getting some real returns out of these.

If you are talking about $50K properties where you have close to zero equity the LLC costs would be too high.More practical is to define a level and then create a new entity when you get to that level.