The “I helped the seller by a sub to purchase” and the “you screwed the seller by a sub to purchase” are both correct AND incorrect.Because it depends on whether the seller was provided with a full disclosure of the ramifications and possible consequences of entering into a sub to transaction; whether the seller is mentally competent to understand the ramifications and consequences, and whether the transaction is accomplished without lying to the lender.

This provided a substantial return on the initial investment and freed up capital for future projects.Financial Highlights•Acquisition Price: $72,000•Renovation Costs: $35,600•Total Investment: $107,600•Funds: raised from personal savings and private lender•Appraised Value: $160,700•Monthly Rent: $2,150•Cash-Out Refinance: $3,200 after paying off private lender and myself•Rate and Term Refinance: 30 yr amortization, 7.25% interest, 70% LTV•DSCR: 1.45%Here's the breakdown of rental income and expense analysis:1.Annual Gross Income: $25,800 (Monthly rent of $2,150 x 12)2.Annual Expenses: $25,800 * 0.40 = $10,3203.Annual NOI: $25,800 - $10,320 = $15,4804.Annual Debt Service: $10,680 (Calculated previously using a mortgage calculator with a loan of $131,775, 7.25% interest, and a 30-year term)5.DSCR: $15,480 / $10,680 = 1.45 (approximately)With a 40% expense ratio, the DSCR is approximately 1.45.

I have never provided a water dispenser/ice maker in any of my other units, but rather a Brita and ice trays with no complaints.

The provider I am using allows for 60 days of continued coverage once construction. 

Finding an agent that knows the market and can find you properties that provide a profit (for both of you) is worth the effort.One more thing about the contract . . . be sure to read the ENTIRE document and ask for clarification is needed. 

I would like to start off by saying thank you all for providing such a wealth of knowledge on this site and via the podcast.

That said, not all markets are the same—some are seeing rents slow, which could impact prices more.

It ensures they did a good job and a thorough job, it also provides evidence of the state the house was in when guests arrived in case there are any guest complaints or guest damage.

Why would you pay down a 7% interest rate when you can utilize the extra payments towards actively investing in other opportunities that can provide a higher return, e.g. actively investing in real estate.

And you can provide a good value by charging a lot less than the big operators.