@Vinay HIt is a totally separate agreement.

Understand the fees involved and calculate the total cost for an entire year of management so you can compare the different managers.

Research and use the 50% rule for a quick estimate of total costs (not including mortgage)  Basics of 50% are assume 50% of income goes to costs. 

This is the majority of the bookkeeping  -banks love it and you can do a P&L per class/property  Administration/overhead expenses can be prorated based on total income or time.

I'd also make sure that you're totally comfortable with all the monthly carrying costs based on your current income.

The previous owner converted the attic space and there are a total of 3 bedrooms on the second floor. 

Its not uncommon for the total debt to exceed (or FAR exceed) the original secured lien amount and no, that doesn't mean the difference is unsecured.

totally agree with Mr.

For the 'passive part' we are just now working on structuring a couple of Private Investor deals where an outside investor could use *their* Self Directed Account to bring the down payments and partner with us doing *all* of the finding, purchasing, PM, etc... so their part would be totally passive. 

In your case, it's easy just look at the numbers.  1 duplex at $190k or 2 houses totaling $160k?