.- Hard Money lender: 90% purchase LTV, 100% Rehab, 11.5%, I/O- Commercial Line of Credit on the funding gap: $13.6k (DP), $12k (CCs) , $15k (Rehab 1st phase) + Carrying Costs = $50kProfit will likely be $15-20k, depending on the rehab and sales price.I continue to learn from others and have gained my experience over the past 18 years as a RE investor.

There are so many ways a syndicator can "add risk" to the deal in order to hit a marketable return for LPs, that any LP really needs to understand the ins and outs of real estate operations, market cycles, financing structures, fees and carried interest, etc if they want to fully assess a deal.

With regard to the "contractor agreement" you mentioned, I would absolutely get it in writing from the contractor exactly what work will be carried out, when it will be carried out and what is included for the agreed upon price. 

So, for example, assumePurchase 80kRehab 20kClosing 5kCarry 10kARV 175kSell commissions/fees 15kWould my taxable profit be 45k (carry costs included) or 55k (carry costs excluded)?

@J ScottI bought both your books two years ago and while the information in the books was not always applicable to my situation (I'm a DIY landlord, not a flipper), I'd like to take this opportunity to thank you for helping to teach me how to work through pricing and carrying out the project management aspects of larger residential renovations.

You carry an interest only mortgage for a small period of time and then pay it off at sale or at refi.If you go right into a 30 year DSCR then you are paying the loan back over 360 amortized over 360 payments.  

You could get your own license, but don't forget the carrying costs and finding a broker will to take you as effectively a non-productive agent. 

Furthermore, by carrying adequate insurance you obviate the need to worry about your personal assets because your insurer will pay and defend any claims.

Consult a mortgage lender with experience in FHA loans to learn more about your financing alternatives and obtain a preapproval.Implement Your House Hacking Strategy: After locating a suitable property and obtaining funding, carry out your house hacking strategy.

Would like me to carry the loan which I would be open to but my bank is not ok with this (I owe approx. $300K as I put a hefty amount down through that 1031 exchange).Current offer on the table proposed by my broker:$600K Purchase price7 year lease with option to purchase within 3 years for an amount equal to $600K less what they would have otherwise paid in principal under under a 7% loan for the same period).