I'm guessing you could pay them a W-2 salary, or they could be an independent contractor and paid a commission or invoice their charges each month.

But, if I include it in my HM loan, it adds another 12k onto my losses, and I have to deal with the invoice clearance and inspection procedure to get my rehab funds.If I partner with someone who puts in the rehab funds up front, I can actually save myself some money by utilizing a crew that I normally couldn't afford using the HML system, increasing my chance of making this flip work the way I want, and allowing me to utilize my own funds as a safety net and/or start another flip.Kind of a great deal, huh?

I do differ from your opinion - not to track your books on accrual basis.Here are a few reasons:- If you do not create an invoice for tenants, then how are you tracking when they are late or how much was paid?

Quite a few subs I’ve used have the Joist app for invoicing, etc.

The invoice was for $35.

False invoices, materials delivered on site that are then "stolen", etc.  

They are usually worth every penny invoiced.  

You need to know who they're using and how expensive they are and if the management company tacks a burden onto their invoice.

@David Jesse Personally if the seller agreed to completely repair isolated termite infested area with licensed, bonded and insured pest control company prior to closing, I would still do the deal.If repaired properly, especially with cinder block style home, termites alone would not stop me.Yes you would want to disclose the termites on the seller disclosure once you go to sell, but have paid invoices on hand from when repairs were completed by current seller and encourage buyers to have their own home inspection completed and you should be just fine.

Jack at HRRE said he would reimburse me for some of the issues but when I emailed him an invoice, it was ignored.