@Steven LacyAlways do the math!!

Before government got involved (just like everything) it used to be something useful . but now anyone who is looking for a job, needs that useless piece of paper that says they passed college

I've looked into what would be required and come up short.Since I don't know all the individuals involved, and they're not accredited investors, I've read I would have to file with the SEC if I wanted to lead this LP.  

We had to raise our liability on each policy while that was all going on, and it turned out it actually isn't that expensive to do so, and a better alternative than having to obtain more expensive financing to put it in an LLC which may not offer the protection you think, especially if you are directly involved in managing the property yourself.

If you are looking to invest in 5 units or up, it's a more involved process but the first step is still getting pre-qualified.

(which I don't think she is) It would also add a ton of extra closing costs that wouldn't have been involved when whole-selling.

The only thing that changes is that 5 units and above is considered a commercial property and the financing process is more involved.

The point is that whether you are successful or not depends on your inputs to a math formula. 

Remember with commercial units / loans there will be a lot of extra fees involved: two closings, maybe two appraisals ($1600 for a 5 unit that I did recently), permits, inspections etc.  

It's really a math equation here Deb, but we're missing a piece of the info, and that is what you can reasonably expect to gain in rent from having the extra bedroom.