To offset that consumption the rest of the property should create revenues to pay for that consumption and ideally provide a profit to the owner occupant after expenses.If you've never read the wealth of nations its pretty awesome stuff but, its NOT light reading and is in ye olde English as it was written in the 1776 :-D~http://www2.hn.psu.edu/faculty/jmanis/adam-smith/wealth-nations.pdf

Regarding partnerships, I wouldn't do it unless you define each others role(you being managing partner) and profits split after all expenses.

I expect the $400 mo profit to be eaten up by maintenance.

You're not just making profit out of a deal, and make sure that's not all you do.

Just make sure the property you decide on projects actually profiting after you run the numbers.

It would be a ‘Buy to Let’ however our philosophy for this investment would be to reinvest any profits into the refurbishment and upkeep of the property and better our asset, whilst paying off amortization and interest.

There are non profitable majors such as art or psychology, which I have a Psyche degree!

Seller Financing - 15 years @ 7% (intended to keep but sold for a good profit)3, 4, & 5 Private Lender - Interest only loan @ 15%I was in my late teens then, so those were my only choices.

Our business model for Black Diamond is a cost center and doesn't make a profit, so I guess we wouldn't get much for the local franchises, huh? 

I still have to run my numbers though because sometimes even that is too high.I also know an investor in areas like romeoville where they could actually afford to pay 80% of the ARV and they would still be making a great profit.