I'm guessing that it will be something like 10% to 20% but definitely not 40%.Do you mind me asking how that works, is there a correlation with how they value the property with how much the town needs to cover their budget?

I'm still not 100% what the advantages to that are anyways, even on a 2-4 units but I still have a lot to learn.So what percentage would you tack on to your fund raising to cover taxes, insurance, and upgrades?

I would have this tenant refer back to the lease that they signed for what is covered and what is not covered. 

We recommend you get management contracts from several PMCs and compare the services they cover and, more importantly, what they each DO NOT cover.

There are some great groups on Facebook that cover Kentucky real estate investment.

Credit score is acceptable, he has no evictions, have enough income to cover rent comfortable. but then i am here as it's useful to learn from others experience for this kind of profile and background that I have no experience with.   

Finding a hard money lender willing to cover 100% of the rehab costs up front is less common, but it’s not impossible.

The lender assesses whether the rental income is sufficient to cover the loan payments.

Hopefully you kept the deposit to cover the costs as that is likely all you'll see.

Look into a renovation loan that would cover both the purchase and the rehab costs.