Even IF you know the property is 100% rented and the person plans on managing it themselves, you still factor in these expenses when analyzing a deal because some day they may not want to manage the property themselves AND there is no guarantee it will always be 100% vacant, so you must factor in these numbers.

It's never a guarantee with higher-end or lower-end tenants, but your risk of a bad tenant increasing as the quality of property decreases.

You will also more than likely have to personally guarantee the loan (one or both of the partners).  

Corporate guarantee again means little to nothing if just a few store units.

Its been my experience that most contractors aren't fun to deal with under normal circumstances, but if they even suspect they will get shorted, you're almost guaranteed that they'll stop work immediately and you will face this exact same situation again. 

Any neighborhood with an elementary or middle school in or adjacent is almost guaranteed to rent out quickly.

Many universities only guarantee housing for 1-2 years and most of the student body has to rent for the second half of their school career as a result.

Currently he only needs funding to help cover the rehab completion.Here's a summary of the dealARV: $315k (I've verified that this is in the ballpark +/- 10k)Purchase Price: $130kRepairs to date: $32kAdd'l rehab estimate: $25k << my pieceProposed terms from my colleague:I am offering 13% annual on a 12 month note with a guarantee of minimum 10% return.

This will take a team of beekeepers, but I can pretty much guarantee that your local beekeeping club (once they get permission from the owner) would absolutely LOVE to get in there and remove the bees.  

Also, there is no guarantee you can get multiple leases to sync up.