Finally, roof age is one of the most crucial components to insurability of a home.

@Avery MooreHi Avery,Here’s what we did…We went to a local bank and did a DSCR loan with a cash out component as well that combined five older mortgages that at the time were at higher interest rates than what the DSCR lender was charging.  

It aligns well with my goals and investment strategy.

HomeVestors provides extensive training, ongoing support, and a nationally recognized brand, all of which are designed to help you achieve your goals.To truly understand the profit potential and see how it aligns with your personal goals, I'd be happy to jump on a brief call.

Here's how you might think through the setup:Structure Options for Unequal PartnershipsForm an LLC with Custom Ownership PercentagesYou bring the capital, you hold 90% equity.He brings sweat equity and daily management, he holds 10% equity.This setup gives you the bulk of the long-term upside (appreciation, tax benefits, etc.) while still aligning your partner with ownership and motivation.Management Compensation OverlayIn addition to equity, pay him a monthly management fee (e.g., 5–10% of gross rents or a flat monthly amount).This provides immediate income for his day-to-day efforts and separates job-based compensation from long-term equity returns.You can also consider performance bonuses tied to metrics like NOI or cash-on-cash returns.Profit Split Waterfall (if Scaling)A more advanced structure for larger projects:100% of initial net cash flow pays back your invested capital (a preferred return).Then profits split, e.g., 70/30 until you're repaid.After that, a 60/40 or 50/50 split depending on scale and risk.This aligns incentives over time and adjusts the share as risk decreases.Entity Structure Tip: S-Corps as PartnersInstead of being individual members in the LLC, each of you can form your own S-Corp (you own yours 100%, he owns his).

Even if your property falls outside of rent control regulations, aligning with state guidelines can still be a strategic move—especially when it comes to tenant retention and avoiding unnecessary scrutinyBeyond legal limits, think about timing in terms of market cycles.

If you can drive rent growth in your residential building component through the use of the commercial space, it can be a good way to make back income that is hard to generate otherwise.

That aligns with what I’m seeing, so no surprises there — but curious if anyone’s cracked that number.What I’m more curious about is warm lead pickup rates — specifically, when a seller replies to a text message campaign saying they’re interested in an offer, and then I try calling them.

I'm seeking feedback on the fairness and market alignment of a pet fee structure implemented by a property manager in a low-income rental market.

This meanse that if you buy real estate this year (or had bought real estate after January 19, 2025), you can fully expense eligible components like appliances, flooring, cabinets, and land improvements...in year one.You can't depreciate the entire purchase price of the property, though.