If you don't need to sell right away you need to consider holding costs and redecorating costs if you rent. and it will take a while to find tenant. 

I give new tenants a guarantee of rent rate to stay the same for 6 months and if they terminate prior to 6 months I charge a $250.00 redecorating fee off their security deposit. and  it has worked I seldom have had anyone stay less than a year and average is 2-4 years...

Never saw a rental property that didn't need redecorating and refurbishment.What is there motivation to sell if they have a good property with a paying tenant?

I know that <5,000 sqft you do not)Legal: $3,500Other: $16,000 (Budget for unforeseen issues)Tap & Capacity Fees: $27,515 Building Permit Cost: $2,391.17 (estimated $706K total costs)Site Plan Review: $224.64 ($100 + $.015 p/ sqft)Wastewater Capacity Fee: $750 per unit x 8 = $6,000Water Capacity Fee: $750 per unit x 8 = $6,000Meters: $300 per x 8 = $2,400Water Tap Fees & Install: $300 per unit + 900 installation = $2,400 +900 = $3,300Wastewater Tap Fees & Install: $300 per unit + 800 installation = $3,200Facilities Tax: $4,000 - ($500 * 8 units, I am assuming this will change as I haven't asked solid numbers )Total Development Costs: $783,785 (8 units costing $94, 848 each, which I think is high)Proforma CF $ - Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Income   Rental Income (Increase 2.5%/yr) 2.50% $ 79,200.00 $ 81,180.00 $ 83,209.50 $ 85,289.74 $ 87,421.98 $ 89,607.53 $ 91,847.72 $ 94,143.91 Vacancy (10% in Yr1) 5% $ 7,920.00 $ 4,059.00 $ 4,160.48 $ 4,264.49 $ 4,371.10 $ 4,480.38 $ 4,592.39 $ 4,707.20 Gross Income $ - $ 71,280.00 $ 77,121.00 $ 79,049.03 $ 81,025.25 $ 83,050.88 $ 85,127.15 $ 87,255.33 $ 89,436.72                   Expenses                   Real Estate Taxes $ - $ 9,000.00 $ 9,090.00 $ 9,180.90 $ 9,272.71 $ 9,365.44 $ 9,459.09 $ 9,553.68 $ 9,649.22 Insurance 2.50% $ 3,000.00 $ 3,075 $ 3,152 $ 3,231 $ 3,311 $ 3,394 $ 3,479 $ 3,566 Trash Collection ($250/unit) 1% $ 2,000.00 $ 2,020 $ 2,071 $ 2,122 $ 2,175 $ 2,230 $ 2,285 $ 2,343 Common Utilities 2.11% $ 2,400.00 $ 2,451 $ 2,512 $ 2,575 $ 2,639 $ 2,705 $ 2,773 $ 2,842 Management Fee (10%) 10% $ 7,920.00 $ 8,712 $ 8,930 $ 9,153 $ 9,382 $ 9,616 $ 9,857 $ 10,103 Repairs/Maintenance 3.00% $ 2,138.40 $ 2,313.63 $ 2,371.47 $ 2,430.76 $ 2,491.53 $ 2,553.81 $ 2,617.66 $ 2,683.10 Turnover/Redecorating 1% $ 2,000.00 $ 2,020 $ 2,071 $ 2,122 $ 2,175 $ 2,230 $ 2,285 $ 2,343 Snow Removal/Parking lot cleaning 2% $ 1,500.00 $ 1,530 $ 1,568 $ 1,607 $ 1,648 $ 1,689 $ 1,731 $ 1,774 Landscaping 2% $ 2,000.00 $ 2,040 $ 2,091 $ 2,143 $ 2,197 $ 2,252 $ 2,308 $ 2,366 Admin Fees 1% $ 1,200.00 $ 1,212 $ 1,242 $ 1,273 $ 1,305 $ 1,338 $ 1,371 $ 1,406 Total Expenses $ - $ 33,158 $ 34,463 $ 35,188 $ 35,930 $ 36,690 $ 37,466 $ 38,261 $ 39,074 Net Operating Income $ - $ 38,122 $ 42,658 $ 43,861 $ 45,095 $ 46,361 $ 47,661 $ 48,994 $ 50,362                 Property Value @ 8 CAP $ - $ 476,520 $ 533,223 $ 548,258 $ 563,686 $ 579,517 $ 595,761 $ 612,428 $ 629,530 Obviously, Once I account for my debt service (DS), say $758,000 @ 5.25% for 240 months ($5,108 p/ month), I am under water.Year 1 NI [$38,122] - DS [$61,296] = -$23,174 = Meaning I cannot do this project.......

My opinion is ultimately the PM company should be held liable to make sure this vendor gets paid.The PM agreement states: (21) hire contractors to repair, maintain, redecorate, or alter the Property provided that Broker does not expend more than $ for any single repair, maintenance item, redecoration, or alteration without Owner’s consent; Leasing & Management Agreement concerning: (TAR-2201) 6-1-10 Initialed for Identification by: Broker/Associate and Owner , Page 3 of 11 (22) hire contractors to make emergency repairs to the Property without regard to the expense limitation in Paragraph 4A(21) that Broker determines are necessary to protect the Property or the health or safety of an ordinary tenant;3) Should/Could the vendor file a mechanics lien at this point?

Mortgage Redecoration Fee in Lucas County: $28.00Lender Fee: Same lender, and their fees are supposed to be taken out of the interest they charge.

The expensive outfit is just a redecorator.

Tenant shall not paint, paper or otherwise redecorate or make alterations to the Property without the prior written consent of the Landlord.

New foreclosure laws do not favor the seller.Dangers if you have to take the property back.They damage the property.They think that since they own the home they can redecorate and rearrange to their hearts content.

As a Property Manager, on certain types of rehab projects for clients (outside of "normal" repair and redecorating) we charge either 10% of the contract price, or a straight hourly fee (terms are negotiated at the outset of our property management agreement).