Besides being in the Army, I'm an independent associate with PrePaid Legal Services, inc.

I had $80k in my 401k pulled it all out prepaid the taxes took the penalty and used it on a down payment for 2 triplexes and a duplex.

Seems like too much of an administrative headache to do.Screen your tenants good and try to find someone who you think will keep it clean without needing a prepaid-maid.

Then, after they have moved out and returned possession of the unit to us, we calculate "pre-paid rent" for the days following the actual date they vacated the unit and it becomes a credit on their account.

They will also look at your real estate resume, they will vet your property manager, require one year prepaid insurance, and ask for every possible document from the sellers!  

For example do I estimate 29 days of prepaid interest, or 4?

Other components of the total deal cost would be the purchase price, estimated rehab, and any closing costs associated with the hard money loan (points, pre-paid interest, insurance, inspection[s], survey, appraisal, etc.).

If the landlord properly raised your rent to $550 while you were living in the rental unit, you can expect to owe the landlord $50 for rent during the last month of your tenancy (that is, the current rent [$550] minus the prepaid amount [$500] equals $50 owed).If your rental agreement calls your entire up front payment a "security deposit" and does not label any part of it "last month's rent," or "security for last month's rent," then you will have to pay the last month's rent when it comes due.

FEES to $100.00Total Prepaid Finance Charge $6,558.03Amount Paid on Your Account/Amount Paid to Others on Your BehalfPaid by S* Seller L* Lender K* Broker R* Branch O* OtherPaid Outsideof ClosingAmount PaidBy OthersOther ChargesPaid By BorrowerAppraisal fee to $425.00Credit report to $19.00PREMIUM FOR 3RD PARTY/LEN to $-3,063.87Homeowner's insurance for years to $420.00Homeowner's Insurance 2 months @ $35.00 per month $70.00Property Taxes 6 months @ $106.43 per month $638.58Aggregate AdjustmentOwner's title insurance $1,500.00Lender's title insurance $550.00Deed $ Mortgage $ Releases $ $125.00STATE TRANSFER TAX FEE to $982.81Purchase Price (+) $173,100.00Settlement Charges to Borrower (+) $8,224.55+ $181,324.55Amounts Paid By/For BorrowerPrincipal Amount of New Loan(s) (-) $129,825.00-$129,825.00Total Cash From Borrower $51,499.55Loan Amount: $129,825.00Prepaid Finance Charge - $6,558.03Amount Financed: $123,266.97I am somewhat tied to this lender as He's the only one that I found that would accept only the last year income tax and having opened my Business a little over 2 years ago 2010 tax return would hurt the average pretty bad.Also I didn't like the fact that He pre-qual me for 20% down 3 months ago and now He says I need 25$ with no significant financial status changeI'd be on a stretch do this deal and am considering waiting til next year when conditions would be more favorable for financing but I have no idea how the market Will be in Vegas.Let me your thoughts.

Well, let's say the house as appreciated a bit and Bill and Diane built a deck and fenced in the backyard, so the value has increased to $550,000.Jane nets $502,000 ($550,000 - $2000/month x 24 months), or about $27,000 more than if her agent had sold it 2 years earlier, plus her mortgage has been paid down.Bill and Diane have already paid $24,000 toward purchasing the house ($12,000 in pre-paid rent at the begnning + $500/month x 24 months) so they owe $526,000.