That seems excessive.

The syndicators that I invest in have sophisticated value adds (value adds in excess of simple rehab) and in recent years hit max GP profit share every time.

I now recommend having them sign a contract saying they will communicate status once a month with distributions (even if status hasnt changed) and hiring a company with an internal maintenance person so as to avoid paying excessive maintenance fees for routine things.

For now the plan is to renovate, but not excessively and just rent it out at a fair price.

You could also have the excess cash as reserves in case you need to do any repairs or fix-ups. 

I am using him for a 1031 currently and he is extremely knowledgeable on the subject.From everything I have gathered, the new property must have a value equal to or in excess of the relinquishing property.

Excessive inspection periods or contingencies on financing arrangements may make me shy away.  

In real estate you can lose MORE than you put in.Grind it out and save up excess cash.

Even then I see the potential for the family friend (friends in business are not always beneficial arrangements, so take with caution) to add value well in excess of $2000.

I am young with a good job and not a lot of excess money to throw around.