The reason you need to start right away, is since it is a rehab, you will have to show documents and expenditures to verify the rehab.

> Management agreementHere is a good little tip...add a place for a SECOND contact person- outside of the owner's immediate family, that can authorize financial expenditures when the owner is unreachable.

I'm assuming, James, that in your discussion it was clear the 50% number includes vacancies and capital expenditures, even though these aren't “expenses” in an accounting sense.

It does not include cash flow, tax deductions (also cash in your pocket), forced appreciation (increased value through captial expenditures & other sources), or even the possibility of buying below the value which you can not do in stocks.

You would include the rental income at the prevailing exchange rates when received and similarly translate your expenditures.

Through tracking of all of our advertising expenditures the money spent through adwords was the least productive, and I am being kind by implying it was productive at all.

We look at expenditures as, "Should we spend $85 for a mediocre dinner out or put it towards the mortgage??"

., expenses, vacancy and capital expenditures are no more than 40% of rent), then at a 10 GRM, your NOI is 6% of the price per year.

It also does not include capital expenditures.

I only wish we could profit as much from the expenditure of our taxes dollars as our government is poised to profit.