Get the actual expenses pd from the sellers actual tax reports to calculate how much of that $600/unit rent goes to expenses... to calculate an actual Net Operating Income (NOI).The caprate for your zip code can be retrieved from a local CRE agent....Google estimates an average of 4.8% for the Charlotte area.That being considered, given absence of other hidden costs, this looks like a good deal on the surface.

None of us know if a local ordinances about affordable housing or other things will surface.

Private lenders in my experience want you to have skin in the game. 

That is what I am considering doing with additional funds until I can afford the next down payment.Again, kudos to you for saving that much, but I think you’ll be really hard pressed to find a property you want to own and then commit to a rental at the price point your savings can currently afford.An alternative I haven’t seen mentioned yet is partnering with someone-you can learn from a local investor you’ve networked with and have some skin in the game in a partnership.Good luck!

So investor no. 2 will be out 5% no matter what here and the VAST difference between the level of care/diligence of a PM with skin in the game vs someone hired to play the PM role would (in my book) be worth the extra 5% to be paid to investor no.2Having said all of that, it doesn't make sense for investor no.1 to do this for 5%- they are out 5% no matter what if a PM is hired, so why take on that extra work for free basically? 

Key to this investment is Cheap ground and preferably an existing hard surface.  10 Acres or more.4. 

Some lenders wont allow this without you having a min. skin in the game.

Hi, I am scratching the surface of knowing much about real estate.

I have been looking at Maui properties to use as short-term rentals but its mostly been surface level and it seems like the leasehold details would make a HUGE difference in deciding whether or not to pursue further.

I didn't encounter many traffic issues getting around those neighborhoods on surface streets.