There are a lot of thoughts about what need to be absolutes, example, person moving in needs to have 3X the rent should be their gross income, and credit score should be 700 or 725+.

Each handoff is an opportunity for assumptions to break.Rent expectations are a common example.

Example: Payment to  an attorneyMost of the time, sure, it’s legal fees.

For example, the area I invest for long term rentals I grew up in the same town and used to ride my bike when I was a teenager all around the city.

Since they for example are responsible for their own financial obligations additional to this person's rent payment who cannot meet the threshhold? 

You’re close, but here’s the quick way to think about it:Cash still in the deal = $415,000 – $92,000 = $323,000Cash-on-Cash (CoC) % = Annual Net Cash Flow ÷ Cash Still in DealFor example, if net rent after mortgage/taxes/insurance is $2,500/month ($30K/year): $30,000 ÷ $323,000 ≈ 9.3% CoC.Your ROI also depends on appreciation and loan paydown, but start with cash left in + cash flow.

For example if Cleveland average home price sits at $145k (which is the highest of Zillow, Redfin, and realtor.com), how much value can you add to a property.

Yes, you do have a total $6k loss in your example.

Or complicated LLC structures in some cases.But if someone is contributing money to such an LLC where the performance of the investment is dependent on the efforts of someone else, the investment is considered to be the sale of a security.In your example, you and your partner want to buy property and raise money from investors.

Keep it simple and choose one solid list (for example, absentee owners), focus on one outreach channel like cold calling or targeted mail and use a basic CRM to track and manage follow up.