Your cash flow might take a hit, but it's never okay to operate as a slumlord, and I do not believe you have that in you from your post.

You need to spell out in your operating agreement what each partners role is and what each will be providing. 

We operate two in that ballpark; each can sleep 22 or 24 with 7 and 8 beds.

@Steven McCutcheon @Anthony Angottiappreciate the advice, also will look into homestyle loan at some point, for my area it seems that all the deals I analyze are showing that single family homes in North Jersey may be a tough bet for my first investment.

If you are willing to do the leg work, contacting the owners of vacant properties is probably your best bet. 

I bet every other year or so that same story hits the news, and then we hear about it in a fair housing notice from the real estate commission.

I can hardly believe they are still operating.

If looking to expand then this is normal and your best bet to get properties without continually using your own $$.

Some of the concepts roll over to multi family as wellSome costs during operating period including but not limited-Initial Phase-Leasing commission one time for 1st month( if using broker) (depend on broker fee structure)Property mgt fees (depend on broker fee structure)Landscape costsRekeying your house or change locksCleaning property Vacancy Any repairs During occupancy-TaxesInsurance Property mgt fees (not included if you're managing)RepairsRental permit (depends on city)Feel free to ask any questions -Kevin

Bet you had a nice ride to the bank today :)