However, there are some smaller institutions and and portfolio lenders that service their own loans that will forgo that seasoning period.

However I would rather buy the policy for $800 rather then save the 30K - 80K needed to do repairs if I decide to forgo getting the cheap flood policy.

I have lived in the property for going on 5 years now, so I wont be taxed on profits.

. $4451 - $3900 = $541 rent lossPITI on new primary + 541) / monthly W2 income = DTI(Although in the real world this math is run per property... but the aggregate numbers would be the same.)The 75% rule applies to any property you've acquired recently (or put into rental use recently) such that it doesn't yet show up on your tax returns or was acquired midway through the year such that the info on your Schedule E wouldn't be representative of ongoing income and expenses).For a property that shows up on your prior year's tax filing, we analyze the Schedule E the math goes like this:Net Sch E income or loss + depreciation + amortization + HOA dues + mortgage interest + MI + homeowners insurance = net income(net income / 12) = monthly incomeMonthly income - PITI/HOA = rent income or lossThere's one more add-back that can go on the list above... if you've had unusual one-time expenses during the prior year (major renovations, disaster losses... pipe burst, flooding, fire) you can add those back.If the property was out of service for a period of time due to the above unusual expense, but has been re-rented, you can sometimes make a case for going back to the 75% rule.I should add that this goes for properties that show up on your personal tax return (whether titled to you or an LLC).

Ok sorry for going off on a rant.

That means your purchase price is actually reduced by the 1+% your agent is having to forgo, and its not simply just going back to Seller.

He has told us once we gain enough capital to where we're comfortable putting that money towards a flip and partnering and getting a higher percentage and forgoing that 25/hr rate.We also have 2 family friends that have expressed interest in helping us out One is MrG the other is MrS MrG has said he'd be willing to partner with us AND only us, up to 75k (but we will see) He is very well off but is not exactly a W2 earner.

@Mason Clinger, all the forgoing are excellent opinions.

People who "Just accept buying it for a song and assume the risks".

For those who are eager enough, and willing to forgo traditional customs in favor of a virtual approach, there are deals to be had.