A “contract to hold” binder payment equal to a month’s rent would also be collected at that time.

You should speak with a CPA and a tax attorney to be safe.Regarding your thoughts about 1/3 equal splits - sounds good until you check out the cost of getting a DSR rehab loan or borrowing hard money.

Income where I live is equal to Cleveland????

It's crucial to consult with a tax professional who understands the nuances of your situation to determine the most appropriate and cost-effective method for your tax filings.

It's crucial to choose a market with steady job growth, low vacancy rates, and tenant demand.

Knowing how fast or slow things are turning would not cause me to change how I manage my business.I'm more concerned about current market rents  All else equal, I know that by lowering my rents $50 or $100, I can lease up my units almost instantly. 

In the long term  expect RE to appreciate at a rate equal or greater than CPI.  

  $200/month divides into the $100K initial negative equals 500 months to recover the initial negative equity.Let's double the cash flow to $400/month.  250 months to recover the initial negative equity so over 20 years.Let's reduce the negative equity position to $50K (which likely is less realistic than expecting $400/month cash flow at that rent point), you are at over 10 years to recover the initial equity position.Now let's do it with all cash, no financing.The 50% rule state $900/month cash flow.  900 * 12/200K = $5.4% or about half of lifetime return of S&P 500, or what can almost be achieved with a zero work, zero risk CD.I see no way that someone who understands the numbers will call this a good investment.Note just because an investment is better than most other investments in a market does not imply something is a good investment. 

If they are VERY professional, they will have their processes in writing as verification that policies are enforced equally and fairly by their entire staff.6.

Hey @Denise Evans and everyone diving into the BRRRR world, you’re raising a crucial point about making sure every single penny is acounted for before signing on that dotted line.