The alternative is the seller would agree to pay you a fee equal to any net proceeds exceeding 290k. 

.   ** If anyone in Chicago has an upcoming project of this nature and would like additional help for the job, I'd be interested to gain experience ** 

What if their only alternative that month is to pay with credit card?

I currently have newer investors, who I feel, are over allocating expenses for single family rentals (typically 3 bed, 1 bath, no central AC units) to the point where it is becoming impossible to find them a deal that cash flow when they run their numbers.I'm curious to gather the opinions and formulas to start introducing alternative calculations from seasoned investors for typical expenses like insurance, mortgage, maintenance, capex (if that is not already included in maintenance), property management, etc. 

The participant loan can be structured to be paid over a term of up to 5 years and you can pay it off early.As you mentioned, it might be a useful way to fill in some gaps, but I would recommend looking for alternative forms of financing that you could utilize at some point in the future.

You can find all Franklin County addresses here: http://property.franklincountyauditor.com/_web/sea...Depending on which city you're in and the nature of your deal, your tax liability could be a higher percentage of your costs than you may be used to. 

I'd suggest reaching out to different brokers in the area for insight on which areas are appropriate, or, in the alternative, you could seek out a local partner that could assist in maintaining/managing the property.Also, check this guide out for a brief overview of neighborhoods:The Ultimate Guide to Grading Cleveland Neighborhoods

Alternately you send a copy of the monthly bill to the tennats to pay you.  

I have spent a few weeks on Realtor, AirBNB, and other sites trying to compare costs with the approximate rent I could expect nightly.With my conservative nature I was a bit hesitant to move forward with anything yet -- I am seeing a lot of condos in nice areas with amenities (saving me having to get a property with a pool) that are in the $150-$200k price range. 

And, in the end, all 3 partners will be affected and probably need to redo their personal returns.An alternative is to pretend that everything has been OK, trust the most recent K-1s and hope that the whole thing will go unnoticed, and the IRS will never ask you guys any questions, and neither will any of the partners.