Ideally I'd like to avoid any language that would require extensive record keeping of hours or wages expended, though I will concede that's probably the most responsible solution.  

How much effort are YOU expending during the flip, and what hourly rate do you deserve?

Hi Jason,Just some random thoughts on this to bring your knowledge up a little.Everyone is different in how they do this--sometimes the lender will dictate certain amounts for certain things.Some people ride motorcycles without a helmet, some always wear seat belts.It also depends on how deep you pockets are, a Policeman owning the same SFH as a Brain Surgeon might want to have more set aside just in case.Some make a CAPEX, list for their guesstimates of CAPEX outlays based on the HUD guidelines in years of service life remaining for each item.But in (for instance) areas of high winds, things like roofing replacements and insurance reimbursements complicate this.You need to budget for turn cost, and wear and tear also, (re: wear and tear; carpet physically wears out over time, vs. renter spilling red paint on it--where you would charge that to the renters security deposit).The costs in the future will either come from the renter or come from YOU, vacancies, wear and tear, equipment failures, etc...The ones that will come from you, need to be budgeted for--unless you have deep pockets and the amounts seem frivolous to your expendable income and you believe you can just cover them easily.Some people can afford to buy their secretary a new car for her birthday, some have their families huddling around the table eating one can of cold beans for dinner--Ole' one can of beans might not be able to meet the financial needs of CAPEX when it comes due unless he sets it all aside ahead of time.Good Luck!

If your PM isn't expending extra effort collecting, the PM should just get 8% of the late fee.Keep these tenants.

You expended resources and time which has cost you actual dollars and that without the certificates and the leases you will be forced to reprice your offer assuming all of the tenants live there rent free or back out and seek reimbursement for your costs due to the seller withholding material facts.However, I am making a REALLY big assumption here based on what you posted.

But, there some who feel I should have been grandfathered in under the original rules, and I should have an attorney look into it.But instead of expending legal fees, I thought it better just to take the money and run.

If you find that he is ripping you off, have him stop working and ask for any money back that was not expended on the project.

No one is going to expend resources to research the public records then provide that information free of charge, even if the ads are almost unbearable.One feature of Zillow that is semi-useful is when you target a specific area - city, for example, and ask it to display the pre-foreclosures and foreclosures.

You could find yourself blazing down an unintended path with triple the effort you are expending now.

I'm not sure that is true, given the hours and costs expended in the leasing process, but I do like the alignment of incentives for the PM to find high quality tenants as quickly as possible.It has been argued that investors will seek out such a PM to give them their worst C- to D properties that have the highest turnover.