It only took me 2 weeks of looking to find these 2 duplexes with positive cashflow.Networth realty and Northwestern Aquistions are the only turn key companies I know.

I even went with 2 private REIT's with small positions just for fun.

It might be able to be done without even losing a bedroom, but even if it goes from 4 bed 2 bath to a unit with 2/1 and a 1/1 unit, the rental income (or sale price) should be higher than a 4/2 SFR in the area.That said I'm not sure if there's something I may be overlooking.It already has 2 exterior doors positioned nicely with separate porches and room to have cars parked on different sides of the house (it's on a street corner).I looked up the zoning regs for how the plot is classified and it is allowed by right (don't need to apply special allowances or rezoning) to have multi-family housing on the plot.The rehab would already have it gutted enough that the changes to plumbing and electrical would be easier.I don't have any idea how hard it is to get separate metering for water/gas/electric. 

I have been mainly coming up with homes that will reduce my current rent, but almost none that will produce a positive cash flow. 

Milwaukee will look cheap to you, but my recommendation is to stay away from low income and high crime areas and invest in areas with better school districts, especially if you are investing for someone else, you want to make sure you are buying a quality asset that will perform well past year one.See you around!

Quality of service and fees vary pretty greatly - from pure document mills/marketing firms to quality advisory support that is really necessary with such plans.

@Jim K. sees the positives in things.

Either you haven't been completely transparent here, or you need to learn a bit more about how to improve your credit to put yourself in a better buying position.

It drives my returns up as they are constantly adding value to my capital rather than tying it up in a stabilized property...and I don't have to do any of the hard work sourcing and re-positioning the next one.

At that point your friend is paid in full and the new lender has a lien in first position.