@Ben Leybovich You say that you don't have to work which is great.

@Ben McMahon Really great feedback, I appreciate it.

Dawn Anastasi post one of my Favorites for education on these price properties is Ben's post about investing in pigs 

Ben

I had a question about buying a property with an FHA loan.If he lived in it for one year and moves out does he have to refinance the loan or can he keep it FHA?

Give Ben Leybovich's blog post here a read, but even more so, read Brian Burkes comments on the blog.Your CAPEx reserve is not an operating expense, it is a reserve and is deducted from NOI.Instead of looking for a specific CAP rate which will get you in trouble, you should be carrying out a discounted cash flow analysis over your {initial} hold period and determine the IRR or MIRR ... use these to anchor your underwriting, then look at things like Cash-on-Cash return to help determine the composition (some might say, quality) of the return.Frank Gallnelli's "What Every Real Estate Investor Needs to Know About Cash Flow" is a good primer to get you started.  

- Do the repayment funds sent to the account custodian have to come directly from the borrower, or can he give them to me to send to the custodian from my own bank account?

@Ben Leybovich Lol.....

-Ben

Ben, I've never seen this discussed on BP.