Having a formal written operating agreement lends credibility to your LLC's separate existence.Transferring property from own name to LLC may trigger due on sale clause and make the loan balance immediately due.Loss of capital gains tax exemption. 

As much as i hate to, if F4F doesn't call me tomarrow by noon i will go to my awesome bank- but still a bank and hope they will give me the credit I need to secure this place and begin participating in this amazing market, and no more rationing food by the 15th of the month while my wife Drs. hound her for higher protein in her diet.  

@Dawn Brenengen We are interested in a balance of both.

The average unpaid balance is $150. 

I've been on strict diet since August and have already lost close to 30 pounds and almost at my target weight.  

I'd definitely find out for sure what all the numbers will balance out to be.

Don't worry about China, OPEC, or Greece, it's just noise.Now, a balanced investment may also need bonds.  

Anyway, here is the deal.Michigan Condo in good school district.HOA $210Owners Mortgage balance $100,000PITI Payment $1100Currently Rented for $1200/moProperty Management fee $120/moComps at $165,000Obviously the Out of State owner is negative cash flow, but could probably sell this thing pretty easy with the equity in the place.Could I offer the SLO to her at: $1,310/mo lease (to cover her expenses) 1 yr lease with 2 extensions$1000 for the 3yr option considerationOption to buy at $135,000 to $145,000Then sell the option as follows:Option to buy at $165,000option consideration $8250 (5%)monthly lease payment of $1400-$1500, (This is FMV for rent in this area)I tried to keep this thread to just the details.  

Its a balance between keeping the deal together and keeping your clients best interest in mind.  

You could rinse and repeat with a duplex, triplex or fourplex...move in and do it again, and see if you lifestyle and day job fits even more additional units in a couple of more years (I am more a fan of work life balance than competing for the most doors, but to each his/her own).