Develop a comprehensive business plan outlining your strategy, target market, and expected returns to present an attractive proposal.5.

Augustine has some strict regulations, or at least has a strict outline of regulations.

He outlined to me at a real estate meetup all of the above information.

All the costs Whitney outlined along with my construction budget seem too cost intensive for the ADU build.

Therefore, all the items you outlined in your question are things I would include, along with any other factors you consider important.Keep in mind that LOIs are non-binding.

However, in this case it’s worth circling back in 3 months, 6 months, or a year because this seller wants to sell, he’s just not ready to give up his fantasy deal.If the seller’s response is acceptance of the outline of my offer but countering on price or terms, it may be worth negotiating because we MAY be able to get to YES.My biggest profits have occurred when I made offers that were nowhere near what the seller was asking and yet WERE ACCEPTED, or with small modifications. 

Perhaps, your PMC needs a better lease or an addendum to cover issues like this.PMC should send a warning letter that clearly outlines repurcussions of what will happen if the tenant doens't comply.YOU must be prepared for the tenant not paying, requiring eviction and any potential retaliation damage to the property.

If the job is bigger I outline what the work schedule is for the customer and let them know how long the work will take.

Quote from @Jay Hinrichs: But like I said its only a handful of folks I would trust to be my clients for this type of activity far more risky than vanilla lending.Why do you believe the risks are higher in the scenario I outlined where clear title is guaranteed at closing but not weeks in advance to present to an underwriter? 

So let's see what the net looks like:2421 rent - 242 (prop mgmt) - 2035 (expenses as outlined above) =  (+) 144 / month.So, Nikki proved me wrong - you can find a positive cash flow property with 20% down assuming the rent amount of $2421.As such, this could be a possible play for a new investor who is looking for solely hands off  turnkey.