They may provide instant income upon purchase, but that could be thrown away by having to evict them or pay for damages that are not covered by a security deposit that you did not set!

I'm not sure what your relationship is with him business-wise or if he is a seasoned hard money lender but generally 10 % in thiscurrent market is good.. for investors the comparison is always the stock market or CDs none of them are bringing in anywhere near 10 so to diversify and get 10% from Real Estate..with a secured position... estate is great I would actually offer him 9 to start. the contract should be written up by an attorney after both of you agree to terms .you said you're doing a flip ?

(I'd post the entire web address but BP won't permit it.)Much success. :).

Another suggestion would be to friend some securities attorneys on BP and Facebook.

Including "living out their security deposit".They were some of the worst tenants I ever had. 

That's another perk of month-to-month is we can get them out much sooner minimize the loss since we still have their security deposit.We also have the similar strategies on our client's that are more affected by vacancy being that they have lower total unit counts.

The more I reflect back on it and knowing that he's a type A go-getter, I think when I said we were interested in investing he went ahead and just threw us in that bucket.As far as not closing any deals with him, we had only secured him as our agent because we were looking for a rental property for ourselves.

Once you get a deal or two under your belt outside financing is typically much easier to secure.

I think my best best is to secure an FHA or FHA 203k loan, find myself a nice multi-family, house hack and ideally crate some cash flow.Being a new investor this is obviously a big leap for me and something I think I would really enjoy.

@Anthony WalkerRent checks should be placed in one checking account and security deposits should be placed in another.