@Chris Clothier ,I have no clue which market Nathan is talking about, but the fees sound excessive compared to MY market.

The property is under contract for 100k and I'm getting quotes for 1k to inspect the property which seems excessive but that's what I'm being told for a 2 unit property. 

You could have a cash flow in excess of a required interest on the money and management fees usual for the area, that becomes a profit and then you'd split that 50/50. :)

In other words, if I estimate that I can buy a property for $70k that needs $30k in renovations, should renovation budget go over by more than $6k, my partner and I split those incremental costs 50/50.CapEx/Emergency fund:  We agree to set aside 100% of excess rent revenues towards 1 year of expenses OR 100% of potential CapEx expenses for 30 years (whichever is higher).

But with the excess supply comming on the market due to people's economic needs I can see the possibility of excess supply vs demand actually decreasing even raw land prices.I just may have proved the last statement of my last post wrong!!!!

I'm actually also looking into investing in the stock market so I could direct excess cash flow to there if my rents are paying for my loan.

California charges a minimum tax of $800 a year per LLC, and more if you have gross receipts in excess of $250k.

If your property is larger, or has a lot of cashflow, and you intend to hold for a while, and you can use the excess depreciation, I would absolutely do it. 

We will quickly correct the excess spending, and fill the vacant units with quality residents.

Apply grout per package directions.In a few hours clean the excess groutDay4: admire your work.