Although it appears that we should have demanded the operating agreement that we have them when we started (it was totally neutral and they had no reason not to sign but laziness) it is actually not the agreement I would find workable now.

You want to stay neutral on items. 

A neutral or small positive number is really more based on geography.  

You can cash flow neutral with a 25% down in those areas and have the added bonus of appreciation.

A property that looks old and dated will be vacant far more then a nicer one that has been updated with new countertops, nice ceiling fans (not the cheap 4 blade white ones), new vanities, nicer faucets, exterior neutral paint colors, ceramic tile in kitchen and baths.  

As long as you stay really neutral that is what will draw people.

If you really want some skin in the game super early in the process, you are allowed to charge at-cost for running credit.So you do actually have THREE opportunities to collect $$$ skin in the game (2 of which are profit-neutral, granted), and you are free to freeze-frame the entire process until you get that investment from the borrower in the process:- When running credit.- When ordering an appraisal.- At closing/funding. 

I'm confused why you say you can't use your rental income to offset DTI,,if I buy a new rental property, I can use 75% of the rental income to offset DTI, after 2 years they go by what my tax return shows for that property .Normally the 75% will offset my PITI,,so the property is neutral as far as DTI as soon as it leasedandy

Not the above mentioned companies of course but a neutral 3rd party.. have them check with neighborsAnd if your home is not occupied and you have owned it more than 60 days.. get right on the phone with your insurance carrier and go over your coverage's.I have had this happen to me in the past were we had a fire and we were denied coverage.. the insurance adjuster for the company starts investing talking to neighbors looking at UTL usage determines it vacant.. and Claim DENIED.With all the feedback on BP about these two companies I thought I would throw that out there..

The problem with NMD deals is the sellers usually wants a premium for financing versus a deal where they only hold a partial second note, not hold a note at all and you get financing, or you are paying all cash.So with NMD if the deal is marginal as is then you need a value add component to make it a success.I would rather have two quality strip centers then to have five and 1 is neutral with cash, 2 are losers, and 2 are winners.