It has a value add of making a 2/1 or efficiency in the basement.

It's a lot of work and the numbers can vary dramatically based on Tenants or many other factors.Personally, I don't care to spend that much energy trying to predict the future.

When you talk about sharing in the downside, how do you account for the time, energy, and effort of the sponsor?

It will be more time efficient and cheaper than attending in person classes.

I am trying to determine the most efficient and tax friendly way to do this.  

That’s go to be the least efficient way to get work done.

Um, start looking for a new lender, yesterday.I would consider selling your existing rental and doing a 1031 exchange into a larger, MFR property that will provide better returns and show some efficiencies of scale.

As I am getting organized to meet with my CPA at end of the month, I have realized I could have done this more efficiently.

What's on the back of mind in considering each strategy is of course how efficiently we can take the steps to eventually purchase our 2nd deal. 

His concept (offer as much as you can via on-market deals from MLS) - This strikes me as the most cost efficient way to start to limit $$$ for leads as I have all the access to MLS.