The top three expenses in a flip are the rehab costs, lender fees, and sales commissions.

These all require applicants to submit an acceptable Letter of Explanation addressing each specific issue and occurrence.Rental HistoryBecause a current landlord may say anything to get rid of a bad tenant out of desperation, we also require information for the previous landlord of all applicants…Analyze IncomeMany landlords require a month of paystubs from applicants and just use these to calculate a monthly qualifying income…Employment StabilityUnless an applicant has exceptional credit, we strive to determine their stability of employment…AssetsWe are one of the few management companies that requires a bank statement as part of our application process…Letter Of ExplanationAny time there are credit issues or we discover an inconsistency, we require a written letter of explanation (LOX)…UnderwritingTraditionally, landlords have only looked at the income of applicants…ApprovalOnce an applicant is approved, we require a nonrefundable Holding Fee to make sure they are serious…

One of the more overlooked downsides is the funding fee; however, if you have a service-connected disability rating, the VA funding fee is usually waived. 

Your total project cost is only ~ $143k. 3c) Your interest rate is probably going to be in the low to mid 7s, at least4) All states/areas are different, but I usually see with my CFO clients that their property taxes are higher than their insurance, with taxes often 1.5x higher than insurance.5) Lastly, I saw PM fee of 8%, are you paying someone else to manage this?

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

Obviously take into account the 2.5% fee and the $30 wire fee.

For example, I mention that every adult must pay a $30 application fee, pass my credit/criminal background, make a combined income of 3x the rent, and whether or not the property accepts pets.

I've avoided being an agent bc I don't want to pay all the fees and sell houses to get paid, but that was before I knew an investor specialized brokerage like this was a thing.

This can be a big roadblock if you need funds sooner to secure deals.2.Fees and CommissionsA large part of your early premiums may go toward commissions and policy fees.