Then there is this loan being offered, which has some residual value, which you can treat as income as it comes in.

I have sealed with both situations but not in the same house 

I first became interested in real estate after a high school friend of mine partnered with some people close to him to flip a house where he turned a large profit, especially for a 20 year old.

Take just deciding on how far you rehab a house…”Do we really need granite counter tops in the rental?”

Meanwhile your peers who own $100K houses in Detroit (no knock on Detroit, just used for illustration purposes) feel the need to create a convoluted web of entities and ignore most of what I shared.

If you are getting a loan, they will require you to get "homeowner" insurance, which covers loss of the property due to fire and/or what other perils they may request (flood, earthquake, etc).

The house is a 3/2 and has an ADU with a kitchen, and bathroom.

I am trying to learn more about the investing world, how to get to be part of big projects, flipping houses and how to find an investor.

Thanks @Jennie Berger. there is no way that it costs builders $200/sqft to build framed houses.

I have the VA home loan benefit right now and I am not sure if putting money down on the VA home loan would a smart move.