The tenants were more interested in that than turning on the already-installed alarm system because there was no monthly cost.

It will cost less than $150,000 and will need moderate renovation work.

You’re on the right track—build awareness of costs where it directly impacts their role, but don’t overcomplicate the program with factors they can’t control.

On your tax return you would report the proceeds, subtract costs and proceeds paid to seller, then the remaining profit would be your flat fee.

Hey Cameron, for experienced investors I can lend up to 100% of the purchase and rehab costs on 1-4 unit properties.

This gets you in the game with minimal upfront costs.Covering the Smaller Costs (Inspections, Appraisals, Earnest Money, etc.)Even when using other people’s money, you’ll need some cash for earnest money deposits, inspections, and carrying costs.

You can create a formula for splitting that cost among the tenants.

Take your sales price, minus selling costs, minus any capex, minus purchase price and that’s your taxable gain.

You are correct in your assumption that it will impact how low they can go on the down payment, though, b/c commissions will need to be paid out of closing costs. 

Very few non-owner occupied property policies guarantee full replacement cost - they typically provide replacement cost up to the dwelling limit purchased.