I want to put down as little as possible because I need capital to pave the driveway, side one of the buildings, etc....The purchase prices would be 80K (3family) and 50K (2family).

I'm not so much interested (right now) in actually going through w/the closing (since I have a lack of huge capital).

I have held the property at times in order to qualify for long term capital gains treatment, that would be hard to do if I was paying hard money rates.

Telling me that it's a poor rental is clear, but I guess I was trying to see if taking a partner to front the capital and then rehabbing would be best, or if my first impression to assign it with a 10k bump in price is the thing to do, or to lease option might be feasible, or something else...I suppose it's harder to evaluate a home that is in such a different market; this neighborhood is so close to lots of change in downtown, and one of this week's top local stories is the discussion of the new NBA arena to be built just blocks away.

Build some more capital then buy another investment.

If I had been willing to do this with my own capital and I could have taken lower returns, I could have done it.

I figured I would buy it for below market value, do most of my own repairs, and then sell after 2 years so i don't have to pay capital gains tax.

Operating expenses include taxes, insurance, management, maintenance, vacancy expenses, advertising, utilities paid by the owner (at least during vacancies, rehab, etc), evictions, court costs, entity maintenance, legal fees, common area upkeep, lawn care, snow removal, office supplies, damage done by the tenants (in excess of the deposit), lawsuits, capital expenses (although not technically an operating expense), etc, etc, etc.

I am working on getting a loan for 80% and the remainder is coming from the capital I've invested in the the LLC and the other 8-12% or so is going to come from a HELOC we got on our primary.As for the credit rating of the LLC, by getting the loan in the LLC's name will that begin to establish a credit score for the business?

Out of town owners get priority when they are in town, and we try to meet at our office to review financials etc; then depending on circumstance I like to walk the property with them, and discuss long term strategies and capital improvements planned or in progress.