Set to be completed in the Summer of 2017.The Following Info is according to the information from the Developer:Purchase InfoInitial Market Price: $700,000Purchase Price: $649,900Initial Cash Invested: $187,475Income AnalysisNet Operating Income Annually: $52,484Cash Flow Annually: 22,847Financial MetricsCap Rate (Purchase Price): 8.1%Cash on Cash Return (year 1): 12.2%Internal Rate of Return (year 10): 19.6%Sale Price (Year 10): $896,059Rental Income is forecast to be $1,400 per unitUnits are 3bed, 2 bath and a garageUnits are 1,600 SqftI feel that the seller is optimistic on some of the numbers so in my calculations I have increased expenses (CapEx budget, management Fee at 8%, Insurance, Utilities) and I have also increased the vacancy rate from 3 to 5.2%. 

As technology improves I think you'll see the better operators bypass the platforms entirely and gain access to distribution using the aggregator sites.  

I can see this described as RTO to the seller as a reference initially because it's easy for them to understand, but not an actual operator.  

@Jeffery Waicak it looks like many missed that you mentioned it is your friend with the good credit, not a random agency pairing people.If you were to do something like this, I would recommend an LLC with a well thought out Operating Agreement.

Of course, you just made it clear that its not as clean an operation as I explained, but did I have the basic idea down?

I realize I can modify our operating agreement to reflect this transaction and his obligation, but it doesn't' sit the same way with me as if he were signing on the dotted line at closing.Please share your thoughts and if I am overthinking this,but if something were to go south or future disagreements I feel like I would be left holding the bag in this scenario.

Electricty, Water, Sewer, garbage, and insurance (or any others that would be operating expenses) are the areas in which I was expecting to get some assistance with.Thanks for the help

In general the site is filled with pretty independent folks that dislike others controlling their capital formation process and thus my prediction is that technology will largely allow active operator/sponsors to bypass the intermediaries in time.  

Any company operating without one will fail in no time. 

I've owned and operated a number of businesses over the last 20 years.