Also, lender must deal with holding costs, insurance, taxes and C/E fines in addition to legal costs of foreclosure. 

They can also demand that you withhold the tax for them!

You will want to make sure if they are required that you have them either directly or through your trades as backfitting after getting red tagged will again, hit you with holding costs.Hope this gives you a few things to consider

Their term sheet states that they withhold $500 should the loan be denied for any reason. 

I typically withhold 10% for maintenance, 10% for vacancy, and 10% for property management. 

@Daniel LiuFirst - you got bad advice to own rental properties inside of an S-corp.Second - If the property manager is considered an employee(look at the definition of an employee vs independent contractor and the caselaw that surrounds this topic) to determine how this person should be paid.If he is an employee, you need to file payroll tax returns, remit withholding payments to the IRS/State, file W-2 forms, etcGood luck!

That said, if it is possible to start a new CAREER in this industry by starting with holdings, I will do whatever I can to find the answers I need.

Hello everyone,I wanted to see if anyone can explain the FTB withholding requirements for out of state property owners.

I have many other examples (not withholding portions of security deposits for resident caused damage, not back billing utilities, material vendor fee increases without discussion).

If you hire a teenager to mow the lawn or baby sit, you need to file paperwork with the IRS and withhold taxes.