The amount down is always negotiable, depending on the level of motivation of the seller and how sophisticated he/she is, you can sometimes get 100% financing!

For off-site management, it's usually 8-12% income plus first months rent.For on-site management, it's usually all expenses (advertising, payroll, admin) and about 4% income.

You will have to put him on payroll .

@Dan Costantino great advice, read a lot and learn, but also that you need to act if you want to succeedd.One thing that helps when dealing with contractors is staggering as much of the labor part of the draw as possible to just cover their payroll, and the profit part doesn't come until EVERY item is complete.

@Brian Sealey NPV like IRR ard DCF are great for convincing an investment committee, outside investors or sophisticated jv partners to come on board a deal because they're comparing what you're offering to what other shops have.

It certainly sounds like a sophisticated scam to those not inside of real estate. 

Sometimes with a seller to make the layperson more comfortable seeing a state approved document and possibly something they have seen at other points in life.For the buyer they assume you are sophisticated and just have the actual important points laid out in 1-2 pages without out all the boilerplate garbage.  

Yep, the expectation is that if you are buying as an investor you have a more sophisticated understanding of the process and your potential costs than the typical hud homebuyer.

Here in the city it's just a little harder to find the INCREDIBLE deals because there are so many huge, sophisticated investors and the market can be incredibly complicated.

The on-site payroll is 60k.