You minimize your tax liability.

But to have these people in place and evicting tenants fast minimize loses on rental income.

But again, I'm not interested in whether you think it's a good deal or not - I'm interested in legal entities.479,000 price16,765 amount downInterest rate 4.5% 30 year fixed4,946.00 gross rents (2x 5bd 3br rents vary slightly from http://hacla.org/vchr/)(2411.24) monthly payment (498.96) taxes(52.91) insurance(242.98) PMI(247.30) property management--------1,492.61 estimated net profit(35.00) trash(50.00) grass maintenance--------1,407.61 estimated profits (less monthly + ops expenses)Yes, I'm renting to section 8 tenants.Yes, I understand the risk.Property is brand new - never been occupiedHistoric vacancy rate for similar deals is less than 1% since these tenants are racing to get into a new property like mine.Property is covered under builder's 2/10 warranty.Because of the warranty maintenance will be minimal.

If we want minimal income (low taxes) we can't afford to spend on these expensive programs.

If the spreads are equal (% wise), I'd take the lower priced property to minimize downside risk if I didn't know what I was doing.

Once you come out of the dark, the networking and dealmaking capabilities start to shine and it gets really fun around here!

You need to ensure that their upcharge is minimal (0-10% depending on what they do).

If you want to get cashed out, you'll either have to wait it out OR you can seller finance, then turn around and sell the paper.If you do carry, these types of terms will minimize the discount you'll take when you turn around and sell: 7-12 years with full amortization (no balloons), 6-9% interest, and with a minimum of 20% down (more if they intend to use it as a rental).

Could it be argued that giving someone some minimal stake is making them a voting partner/manager and thus the solicitation rules don't apply.

I don't know enough about the deal to comment on the numbers, but what good would a life insurance policy do if you trashed the place and walked away ... would you meet an accidental demise in a dark alley???