@Andrew Steffens We are a full service property management company, we do offer some of our homeowners just the administrative side of things at a discounted price.

Needless to say after a few emails back and forth, the scaim begain to unfold,, Red flags begain poping up, once he started asking for money for his consultant,,BELOW IS A COPY OF THE EMAIL HE SENT.I have spoken with the consultant, closing and administration cost will apply as here under stated. 

I had a great administrative assistant, smart as a whip, who worked for me full time for several years in a different industry.

Here is what I proposed:Setup fees : Administration Setup:One Time Fee: $400Guidebook: Using professional photos give the guests a professional tour of the house and how the home works (Wifi passwords // How to use grill // How to use propane fireplace // Hot tub instructions // Sauna instructions //Check in and check out instructions //where extras may be storedOTA (Online Travel Agency) setups: taking professional photos and actively updating your listing on popular platforms;PMS (Property Management System) Setup Smart Pricing Set upWebsite integrationOther (furniture arrangement / design / décor shopping and set up) $50 per hour· Placement fees · Marketing Cost: Variable depending on needs/wants for marketingFacebook AdsGoogle Ads Cleaners: Set up procedures/take pics of expectations· Management fee—30%Guest communicationCleaner communicationSetting Rental rateDealing with small maintenance issuesBooking CoordinationSmart Lock integrationKeeping supplies stocked (TP, paper towel, all cleaning products, coffee, filters, creamer, sugars, teas,)(Receipts would be submitted on a monthly basis for either reimbursement or book keeping purposes)Encouraging guests to leave good reviews by periodically checking in, providing a review template, and ensuring guests receive the amenities they are looking forContinued marketingMajor Maintenance fees—OwnerCleaning and laundry services fees: Cleaning fee to the guest depending on how cleaner wants to charge

The only alternative to this, would arguably end up costing a lot more because it would mean breaking down every function into a billable and than tiered options on each and all of this add's a whole ton more administrative and accounting measures just to track and manage, thus adding more admin impact and there in, more cost.

Thanks for the idea Bob, I am somewhat familiar with MLP's and it's a good consideration but I am worried about the Obama administration reforming the corporate tax code which would negatively affect MLP's overall.

This could lead to friction during the application process or deter some potential tenants.Increased Administrative Work: Requiring multiple applications per household increases your workload, as you'll need to process more information, run additional background checks, and review more documents.

That would create an additional administrative layer and cost that likely exceeds the benefit provided on a single low dollar investment. 

My opinion is this (formed from personal experience investing in just about every way possible - house flips, wholesaling, short term rentals, long term rentals, new construction, NN commercial, NNN commercial)The most passive way to invest in real estate is buying a NNN property and outsourcing the administrative work (invoicing the tenant, paying the tax bill, etc).

For lower-cost properties, such as a single-family house at $200K, the benefits of having a separate LLC might not outweigh the administrative and financial burdens it incurs.