Having just received that check I come to find that all these extra fees have been deducted from the rent.Total Sept rent: $1675Fees from rent: Eviction court fees: $480Management company fees: $120Terminix, beehive: $189Energy bill: $1536 days rent: $334.98Total: $1276.98Total rent due to new owner: $398.02I did not keep on the management company at the time of closing.

Some questions I picked up along the way that I didn't have at first:What is the E&O premium and what is the deductible? 

If you are looking at a duplex, you would have to live in half in order to pay less than 20% down (maybe 15% some people say, but Ive never seen a bank loan 85% LTV on a non-owner occupied).To answer your question - I would have 4 months of straight mortgage payments PLUS your insurance deductible. 

@Edward Rangel yes you pay taxes on the net profits of course, but with a rental you also have depreciation deductions etc.

Unless my understanding of NOI is incorrect.Isn't the Net Operating Income the income generated after expenses are deducted, meaning the cash the owner gets after paying the operating costs.

_______________Sanders will do away with 1031 Exchanges, the ability to deduct REI losses from personal income and more.

You should also be deducting a 10% return on your cash investment from your rental income before calculating your NOI.

If you are actually wholesaling the properties you could deduct it as a business expense of your wholesaling business. 

I sent them a letter notifying them of the damages found, and that the damages would be deducted from their deposit, and they'd owe the $250 charge.  

Thanks @Lydia S. thats what I believe as well but I wasnt sure if the seller clears that up before closing or if at closing the lien amounts are deducted from what I pay seller by lawyer to pay liens