So then, what is fair, is you bringing something to the table that is more than what is ordinary for the fee you already charge.

Hello, new to real estate and need some advice on creative financing.4/2 SFR built in 2005 (pool and screened-in patio included) just came on the market.

schedule E is income/expenses by property (A,B,C,etc). although it doesn't matter that you cant insert trust deed income into a schedule E b/c it's taxed as ordinary income.

It is ordinary income, plus both sides of social security/med. 

The broker didn't ask for anything out of the ordinary/suspicious, except to tell me that I would need to pay for the appraisal when it occurs (rather than at closing) bc it's done by a third party.

Profits you make when you sell will ultimately be taxed at your then current ordinary income rate when you start taking distributions.

If so, what specific contingencies would be considered 'common' vs out of the ordinary or unreasonable?

Lower roof on addition is old Missing downspouts Replace back down spout Back patio is out of date and either needs replacement or recoating Pressure wash siding and paint entire house New cement walk way Landscape front and side of house Replace driveway with new black top Remove old tree out back Update old shed out back with new wood Fix wire fense Capping two outside windows.ConcernsMoisture issue and rot in crawl spaceTermite or pest inspection in craw spaceElectric heatFlow from front door to family room is odd

If you intended to sell it as a spec house, it doesn't matter if you sold if after 5 months or 5 years -- it's dealer inventory and subject to ordinary income taxes.

While not impossible or relatively uncommon it is not all that common due to the nature of the security instrument and the ordinary course of business most Mortgagee and Servicers conduct in the state.