He said the rehab would roughly be 30/40k.Ask him to put that in writing and guarantee that he will pay anything over that amount.

The $80,000 would make you $4000 a year just sitting in the bank while you wait for the market to settle - that return is 100% safe and guaranteed with no tenant issues or repair expenses.  

I would definitely always do your numbers conservatively though when analyzing the deal because this is not guaranteed and can be very risky if you rely on the higher number!

But there's no guarantee that the next set of tenants won't beat this place up all over again, sending the owner back to square one, which is why you don't spend $34k to turn an apartment.

To precisely compute deductions and guarantee conformity with IRS regulations, it is essential to maintain thorough records of rental income and expenditures.

They don't guarantee the condition at all.

And evaluating the track record is a call that's made first by the taxpayer or their CPA, and ultimately by an IRS auditor (should one get involved). it is very true that the IRS cares about intent with respect to capital gains in real estate -- I've certainly seen cases where the statutory timelines were less important and the identified intent of the investor.with respect to determining whether you qualify as a developer or an investor, it's much more of a "forest" than the "trees"...so holding any given investment for 14 months prior to a flip is certainly no guarantee of receiving long-term capital gains treatment.I hope this helps.  

You'll still need to personally guarantee the loan and you as the borrower will be evaluated, but the property will be titled to your LLC. many people do exactly what you mentioned and form the LLC right before starting the process, so there's no issue there.

You will still have to personally guarantee the loan, but the paperwork is in the name of your entity.  

He offers a 90 day money back guarantee so long as you submit at least 1 note each month.