From my experience, for individual unit management, you are looking closer to 8% for residential units, not including the leasing or maintenance, of course.

It stretched me beyond just writing a check — I had to think about how financing, cash flow, and title work across multiple properties interact.Challenges & Lessons Learned (as the funding partner):Title coordination: Watching the operators juggle multiple closings at once gave me an appreciation for how complex portfolios can be compared to single deals.Cash flow management: I saw firsthand how critical it is to plan rehab draws carefully when several properties are in motion at the same time.Exit flexibility: From the lender’s seat, I realized how valuable it is when operators have multiple exit strategies (hold, refinance, sell individually).

At $112k a year, have you considered finding a REALLY high performing individual to just be your asset manager?

No worries there.However, if you are talking about buying a house that is in pre-foreclosure, before the sale, (which is what I teach my partners to do) , the items I mention below come into play.2008 saw a whole new approach to regulating foreclosure law at both the state and at the Federal level.

His father owns properties and has been teaching us how to manage them.

I understand that every investor's journey is specific and unique based upon individual needs and objectives; with that being said - I also believe there are (as with most industries) best practices alongside ill-advised practices that are generally common to all.Back in Feb., after a year+ of reading this and that, my wife and I jumped into the REI game.  

A few quick tips:Wholesaling first: Great for learning deal flow without risking too much.Keep the winners: Deep discount, high-cash-flow deals are perfect for building your own portfolio.Mentorship matters: Find someone actively doing deals, not just teaching courses.Watch pitfalls: Compliance, team management, and local market demand are key.If you execute well, this approach can set you up to scale smartly.

It’s amazing connecting with investors, business owners, and like-minded individuals here.

Going with one individual cleaner can be risky. 

But what can that person teach?