It's nice to have a second opinion that my proposal will not be unreasonable for my tenant.

This can be one the biggest hurdles.

I probably wouldn't go as high as the $500 you listed, but it wouldn't be unreasonable as long as the income it brought it made the numbers work.

Therefore, it’s not unreasonable to think of this $2,563 as a gift, which at 3.11% of the initial $82,322 investment, is not an insignificant one at all.

The “agreement” he sent me is below (identifying details redacted):______________________RESIDENTIAL LEASE and OPTION TO PURCHASE AGREEMENTBUYER/TENANT: XXX Holdings, LLC Date: 2-16-2018SELLER/LANDLORD: XXXPROPERTY ADDRESS: XXXXXXRESIDENTIAL LEASE1) Rent: $2,500 per month2) Lease Term: 36 months, beginning March 16, 2018 and ending March 16, 2021.3) Maintenance: Buyer/Tenant will be responsible for maintenance and repairs ofthe property, not to exceed $500 per incident.4) Sub-Lease: Buyer/Tenant has the right to sub-lease this property with writtenconsent by the Seller / Landlord, and this shall not be unreasonably withheld.OPTION to PURCHASE1) Purchase Price: $ 345,0002) Option Period: 36 months, beginning March 16, 2018 and ending March 16,2021.3) Option Consideration: $100 - All Option Consideration will be credited in fulltoward the purchase of the property.4) Rent Credit: Buyer/Tenant will be credited $ 0 per month toward the purchase.5) Closing Costs: Purchaser will pay all allowable closing costs.6) Expiration: This offer shall expire on March 16, 2021.7) Inspection: This offer is contingent upon physical inspection of property andsubsequent completion of a more formal and signed Residential Lease with Optionto Purchase Agreement.8) Non-Exclusive – This agreement is non-exclusive and can be canceled anytimeby either party.9) Assignable – This Agreement is assignable with written consent by the Seller /Landlord, and this shall not be unreasonably withheld.X_____________________________ X ________________________________Seller/Landlord Date Buyer/Tenant Date_________________I have a few questions: Is this legit?

If your taxes aren't too complex, their fee won't be unreasonable.

@Allen LemayIt takes a huge amount of work looking for deals, analyzing them and making sure that the numbers make sense.And it is fair that whoever finds the deal and bring it to the table gets compensated.5 to 10% is not unreasonable.

The most recent unreasonable request was to replace a sidewalk that had passed inspection just a few years prior - newly hired inspector has to show he can flex his muscle I guess.

So just be ready for that hurdle and link up with someone knowledgeable that can help you through that process.

I know one big hurdle upfront is understanding how much to budget for expenses, rehabs, etc., so make sure you're networking with lots of other investors, property managers, contractors, etc. in your area and asking them about the numbers.