I bet dollars to donuts this person is doing it.Also, a car is both a terrible and great way to judge someone's income and priorities.

Do you homework and deals on both sides of the state line can be had in KC. 

We do have a lawyer lined up who should be able to take care of that aspect, so that's good to know.In terms of the structure you proposed, I just have a couple follow up questions to make sure I understand properly:1) If the investor pays us $50,000, we would offer to pay him a preferred return of $3,000 per year from the monthly income we receive?

Just watch the school district lines that makes a big difference in price in the area.

Have the fence removed on the front of the lot you're selling and have it reinstalled on the property line between your house and the lot.

By reading you learn, through others' experiences, generally a better way to do business--especially in our line of work where the consequences of incompetence are so final for young men.

The solution might even be in your next step, I have not used Quickbooks for real estate or business but I know that on your tax return each property has it's own column with its income and expenses detailed for the year and then they are all combined later into a single line item. 

If this is the case, line up your financing or funds before you go and look/lock a property.

The LLC will be a pass-through entity and all items of income will be reported on your personal tax return, but you still should keep separate books for the entity.You also want to look at whether a pass-through entity helps your bottom line and your taxes. 

There are some creative options I bet you could think of with family though.