The operations and management partner will actually be on title and assume any risks associated with the property.

I have to constantly remind myself to stay away because there is always more to the story and too much risk for me.Indy has a good ratio for cash flowing.

It's based on too many assumptions that may or may not be true, and can lead to both overpaying on a property (to the point of not being able to generate a profit) or under-bidding on a property (to the point of not being competitive and not getting any deals).I much prefer to use analysis techniques that take into account the actual cost of capital for the individual investor (are you using your own cash, borrowing hard money or something in-between), the actual cost of commissions and closing in a given demographic (sometimes the seller will pay buyer closing costs, sometimes not), the actual time you expect a rehab to take (a six month project has vastly different holding costs than a two month project), and the risk on the project (is 15% return enough or do you want 20-25% returns on more risky/costly projects), etc.70% rule is lazy (IMO) and while it's fine for a first-pass analysis, if you use it to make buying decisions, you may find it impeding your success.

I have two condos in my portfolio and I like having the HOA restrictions to help keep the community, tenants in check and the risk of the community deteriorating over time is also reduced with a well run association.Currently I live near a huge townhome complex (few hundred townhomes) that was built in the late 90's.

You plan to oversee the PM intensely for the first few projects to ensure things are done the way you want them to be.If you can do those things, hiring a PM is not a bad idea, but given that this person replaces you (to a large degree) in the project means there is a lot of risk if the person can't be trusted or doesn't have the skills necessary to do the job.As for going rates, it's whatever you negotiate.

Little risk other than the time finding the deal.

Extra money for extra people is your call, but I think you also risk additional problems just because of more people in close proximity.Just my .02

If I decide to proceed with the line i'll keep what you said in mind- i did not think that the bank calling the line prematurely was a risk.

Wouldn't you rather take the profits and pay on average, 30% in taxes then to risk losing 50% of your profits in a downturn?

The paperwork is not hard to figure out on your own--I've rarely seen anything in an addendum that I didn't understand (but they are boring).As long as you have an inspection period, the only risk is your inspection money if you decide to back out.Having said all that--I haven't read this entire thread, but I don't understand why your low offers would suddenly be more enticing to the listing agent in your town if she now has to split a commission with your buyer's agent.