I spend a week or two a month at the out of town location and I'll get reimbursed for living expenses while out of town.

@John Geldert  its not necessarily standard procedures but just one way to do it.same thing as many of the lenders want you to do the work pay the subs then upon inspection they will reimburse you.. this throws a monkey wrench into many flippers cash flow.. its whatever you can negotiate.. but if your looking the the least expensive money then your going to have to put up the most cash and give the greatest protection to the lender.

It’s no different than an employer making a mistake and overpaying their employees; you are still responsible for reimbursement if it does not clear or belong to you... and that is exactly how the law sees it.I’m sorry but I’ll be very blunt...

If they were foolish enough to offer a management agreement that said they would pay out of their operating account and ask for reimbursement from the owner after, then that is just poor business practice.

And you will need to pay up front for materials and labor, then be reimbursed for these costs by the HML after the work is inspected.

This was negotiated down from the $565k asking (it was flat out over priced).The seller covered all closing costs, reimbursed all of our prepaid items (appraisal, home inspection, land survey, etc.), and covered some of our first year expenses (insurance, termite re-treatment and warranty).THE INCOME - $3820/month3/4 units is currently renting at $910.

Not to mention, I am not sure how the utilities are paid, I am assuming the tenants pay their own utilities ... however, if I am liable for utilities and Local Housing reimburses me for the utilities ...

@Greg Martin if you report your expenses, you will also need to report your insurance reimbursement.

Is it normal practice for the seller to obtain (at their own expense) Title and Property Insurance, or is this something we should be reimbursing them for as well?

You will likely need to reimburse that if they can prove with a legitimate rental agreement that they were owed that upon vacating When you buy a rental property you are assuming all leases as well.