If you have a backwater valve (nominally closed type), the sewer gas should not come-up through it even if the trap were to dry out.  

$/SF $130.208333333333/SF   RSF 768 RSF                 Acquisition Uses and Sources of Funds       Uses of Funds     PSF Nominal Value Purchase Price     $130.21 $100,000.00 Acquisition Costs     $3.26 $2,500.00 Renovation Budget     $10.42 $8,000.00 Other     $4.16 $3,197.75         Total Uses of Funds $113,697.75             Sources of Funds   % Total Cost Interest Rate Total Equity (includes Acquisition Costs) 25% $28,424.44 Mezzanine Loan Amount   0% 0.00% $0.00 Total Senior Loan Amount   75% 4.50% $85,273.31         Total Sources of Funds $113,697.75           Income   Monthly Rent Annual Two Bedroom Units 2   $715.00 $17,160.00     Gross Potential Rent (GPR) $715.00 $17,160.00 Other Income       $0.00           Gross Potential Income $17,160.00 Less: Vacancy & Collection Allowance   5.00% -$858.00         Total Income $16,302.00 Operating Expenses (Detailed Below)         Total Operating Expenses       -$8,018.00 Net Operating Income (NOI)         NOI       $8,284.00 Net Income (Pre-Financing Costs)         Net Income (Pre-Financing Costs)     $8,284.00 Financing Costs (Taken from Financing Section above) Monthly Annual Financing Costs     -$432.07 -$5,184.81 Net Income (Post-Financing Costs)       Net Income (Post-Financing Costs) $3,099.19 Initial Period Metrics       Unleveraged Cash on Cash Return     7% Leveraged Cash on Cash Return       11% GRM (On Purchase Price)       5.827505828 Percenatage of After -Tax Income $45,000 28%   26% Pre-Tax Monthly Cash Flow per Door   $129.13 Discount Service Coverage Ratio       1.60 IRR       17% Cost/Unit       $50,000.00 

It depends specifically upon what each of you is bringing to the table and who’s taking the risks.If the investor is buying the property and also funding the rehab, then you would get paid your regular contractor fees.If you found the property, then you might get a nominal fee for that.If the investor is buying the property and you are the contractor and also funding the rehab, then you should split a percentage of the profits, since each of you has something to lose. 50-50 might seem reasonable unless it’s a high dollar purchase that needs a trivial rehab involving little time or cost, such as minor paint and carpet.One flip team we know pays their rehab investors 20% of the profits and has separate teams of contractors.It would be easier to answer Ray, if you explain your specific involvement with one another here.Jeff

I apply inflation to adjust the Case Shiller from nominal terms to real terms.

The start up fees were nominal with a rather small monthly office/technology fee.

The CPA's and experts I talked to all seemed to think they were fairly nominal in my particular case so I took the plunge.  

Some issues... the rule of 72 doesn't necessarily account for inflation and the 'doubling' mentioned is in nominal terms.

That purchase can be very nominal, not markt value. 

It may not fall to that, but I think it you look at the price adjusted by inflation and the nominal price over time, they will come back together.

It is not just the overall size of the parcel but the shape of it and how much land is usable after buffer requirements.The county could take some of your land for road widening for a nominal amount paid to you.