@Lynnette E.

The reason I recommend using partnership is to control how the income hits your 1040 schedule E.  

I am seeing these Turn Key companies which seem ideal for an out of state investment, but am wondering if that is a good strategy for a first timer? 

My goal would to ideally get them on a new lease with a 10 year term.

We have to pay for classes, renewals, memberships to MLS and associations (required if you are an MLS member), advertising, forms, e-sign software, signs, flyers, the list goes on and on.

But again, we go pretty big and are pretty busy.If you are just starting out I would make sure to line out all your must haves - MLS membership, forms, e-sign subscription.

Ideally you'll pull all this money back out after the refi but you need to make sure to account for it up front so you have it available.Best,Paul

Not sure if that's ideal or not?

Ideally screening tenants who aren't just ideal for renting, but responsible enough to buy someday.

Here is an example with numbers (an ideal best case scenario):ARV: $175Kpurchase price: $90Kclosing costs (including HM interest): $10Krehab: $25KAll-In cost: $90K+$10K+$20K = $125KHard money loan (70% of ARV): $122.5K Out of pocket: $2500Once the rehab is finished and the property is rented, refinance $122.5K into 30yr fixedEnd result: $52.K captured equity with $2500 out of pocket.The rent should be above $1300