Cheat Sheet is just another way of saying you're OK with fudge factors, that will justify a bad deal. 

The income generated often off of these smaller spaces in rent does not justify the overall price.   

Cash flowing $450 is not too terrible in my opinion, but it seems like almost all of the major expenses are happening right now and it's hard to justify keeping the house when it only makes about $5,000 profit in one year.

This can be very expensive and is usually the worst choice to make because you can't justify the cost.2.

They have invested money on a value add that will not provide the level of return that justifies the work and risk. 

I definitely agree that one $15M investment on its own wouldn't be enough to justify investment.

@Shiloh Lundahl I plan on going in 2021...I'm not quite there yet to justify the $7K, 10 day boat ride haha.

So, it's basically a Personal Loan (to the LLC) and promise to be repaid once a specific property sells (the most current one).I'm not saying me explaining myself or answering your red flag questions now justifies this being a good deal for me, but hopefully those details give you some more insight to it.  

Small properties perform excellent and the price jump from 2 bed to 3 bed doesn't really get justified here either.

I am trying to understand if ~$500/month (in your case) is a justifiable recurring expense.