Hours of servicing the loans in all their aspects quickly eats up the points we received at the beginning of each mortgage & it feels like we're doing all the work for no compensation.  

It is important to find something that was properly maintained, with modern plumbing, electrical and roofing. 

Here's the details:ARV- $210- $220KRent: about $1,900/month3 beds/ 2 bathsNeeds: New roof, New HVAC, New fence, Minot touch ups inside like paint and cabinet touch ups.Rehab- About $40kI offered $140K and he countered with $190K.

The cost is the same for a roof on a house that rents for $800 per month is the same as on that rents for $1800. 

I would get an attorney or title company involved to create your loan documents to ensure they comply with the law and cover all the aspects you need.Another method that is likely your best bet to take on investors is to create a joint venture (JV).

Just make sure you keep enough in an emergency fund in case a roof or furnace goes out. 

I think this applies in all aspects (fitness, relationships, career, etc.). 

Where I see my clients do really well for their clients is the HVAC is brand new electrical panel new  Roof brand new etc etc.. kind of like those that buy new construction for rentals those folks are paying full retail for those..

Glad you are setting aside money, but if the HVAC is 20 years old, or the septic system has never been pumped, or the roof is 25 years old, etc; you will get hit with a cost before your build up enough set aside.How stable is the other tenant? 

we just see new investors in the forums blown away when they hit their fix big capex - a new roof, a new furnace, a driveway repair, a couple appliances going at once.