It seems like a good model.

If you have any examples of partnerships like this that I can model or any personal experience that you can reference, that would be very helpful.Thank you.Ian

Anyone know where I can find a SFH model template.

I believe it can take me months just to find my first property so I'm concerned of how long it would take to just make 4-5k per month in rental revenue if I go the leverage route.Maybe I can work some sort of hybrid model that falls between these two, like buying the first 2-3 with cash and then refinancing one of them to get the next one.

Hi George,The areas you are talking are mostly driven by appreciation and speculation that values will keep rising.That is a very low cap of 3.5%.I do work with many investors from California,New York etc. wanting to get a higher return than what they can get locally.I have owned businesses before so it is critical when buying a business that you have a proven business model in place with management so that you do not have to be there every single day.If you set up a business as an absentee owner with moderate supervision then you can count that as an investment and not a job.I don't know that you put 800,000 into your dream home.Having the money work for you instead of dead equity especially being able to lock in low interest rates today I would invest as much as I could.Get a loan for that house and put minimum down possible to preserve cash.The Ocean house is nice and I am sure it will appreciate over time but will be dead equity until you refi out or sell.Even on refi they will not let you go to 100% so any appreciation likely you will not be able to refinance because of LTV ratios in the near term.I don't know that you want to be a real estate agent in the typical sense.You would have to define residential versus commercial etc.I would put most of your money to work as I don't think your cap is going to get any lower for resale plus you can invest in markets without rent control where you reap more benefits.

They have insurance, but I am wondering if there is something wrong with this model if the contractor allows them?

Hi Brian -Assuming that your retirement plans are of the "traditional" model rather than the "Roth" model, transferring them to a different type of plan is generally not a big issue.

Take a look at Rinnai's page:http://www.rinnai.us/hydronic-air-handlers/If what you are looking to do is just use a tankless water heater to supply hot water for both plumbing and your hydronic heat it may not work.If you go the electric route the "whole house" models require either 200 or 300 amp electrical service.Who pays for utilities?

While I didn't read the entire article, I imagine that whatever was ultimately proposed as an optimal bidding strategy was the same as following Nash equilibrium, another concept you might want to familiarize yourself with from game theory.Now, the problem with using Nash equilibrium -- or any other optimal bidding strategy -- in a real estate auction is that the item being purchased doesn't necessary have a commonly agreed discreet value (what the article calls a "common value model").Instead, the participants in a real estate auction may have very different perceived values of the properties up for sale, depending on what their exit strategy for the property is.

I work on the model where i have a day time job and then I invest in new properties (after research of course and keeping an eye on the market) and after completion (3 years) rent them out.