I have no time, and I found a 2 percent deal, now what?

[Steven Westlake]

So heres the basics. I’m a full time landlord and currently building my own custom home ( remodeling a commercial building into a home). So in short I don’t have any time left for more projects for a while.

My also a landlord buddy has decided to sell all his stuff in central Ohio and retire. A lot of his stuff is already gone. But he has left a multi family left, that he’ll sell at 2%. For those who don’t know this place has $3000 per month income and he wants $150 k asking price, so 150,000 times 2 percent equals 3000 per month. That’s double the 1% rule, or really good cash flow. It’s also fully rented. However if it were me, I would update some stuff.

Expenses are About $360 for water and trash. Around $250 natural gas. Around $200 electric.

All those are monthly

So here’s what I’m thinking, instead of wholesaling it, which would show up as short term capital gains, and then nothing afterwards. I’m thinking there may be some a way i could keep 10 to 20 percent of the deal as a silent partner. Has anyone tried anything like this or has a better idea, please let me know what you think.

[Bill B.]

To keep it a 2% deal you’d have to pay for whatever percent you want to keep (So $30k down from you if you want to keep 20%) and then do that much of the work (the person who owns 80% won’t want to do 100% of the work). It would be 100x better to just hire a decent PM who’s going to take $240/mo and you’re going to spend less than an hour a month on the deal. You’ll get 92% of the profit while doing less than 20% of the work you’d have to do to keep 20%.