Sounds like a great deal.I am also learning a lot at BP and equally looking forward to my first deal on Rental Property.

The TIC will mean equal ownership, what happens if someone wants to hold out for a higher offer?

An equal 25% return using other strategies is often much higher risk.To be continued on the Somewhat Savvy Investor Chronicles...

That percentage would equal out to 2k in marketing per house.

My 1200/month is on the conservative side so if we went with the median it would equal 100/month profit.Ideally, I would like to get more than that out of five properties but again I just wanted to see if the overall process I outlined above was accurate.

Maybe, I take a five digit lump sum cash out and now my mortgage payment/cash out loan/HOA are now all equal to what I charge in rent.  

The only thing that comes to mind is a lease option type deal, where if they default, they just get evicted.2.If I understand lining up the mortgages correctly, it’s only really necessary to line them up so the principal of the second (seller) mortgage is equal to or higher than the owner mortgage if the end buyer decides to pay off the loan early, correct?

It usually only costs a point or 2, but 1 point a day, times 365 days a year, equals 365% return on their money.

This illustrates that yesterday's cashflow doesn't equal future or even today's cashflow.

The way I make sure the numbers work is by taking the ARV (after repaired value, found by running comps on sold properties from past 90 days get a realtor on your team to do this) times .7ish (this is the amount that the average investor in your area wants off of ARV. in this case 30% but it can be as low as .9 in fast markets) minus the renovation costs (have multiple contractors give you bids if you are new) minus what you want to make and that equals your max offer.