A well written management contract should clearly spell out what is expected of both the PMC and the owner, to PROTECT both and avoid misunderstandings.

Owner occ developments there is no value associated to the income approach so these props generally speaking will appreciate a lot more as the neighborhoods are much more desirable. builders the last thing they want to do is sell to investors if they are creating owner occupied communities.. rentals degrade the neighborhood and they will be sabotaging their own values to allow a bunch of investors to buy and rent out in their communities.So when you buy new builds keep in mind if its a build to rent community they will NOT appreciate like owner occupied neighborhoods.. might be best to find something already 3 to 5 years old where the stigma of renters dies down.. that would be best to protect your investment.

This was done to protect senior citizens on fixed incomes from being forced to sell their homes due to unaffordable property tax increases.Since the passing of this amendment, all properties in Michigan have two property tax values associated with them:State Equalized Value (SEV): supposedly equal to 50% of the market value of a property, not based on recent sales price.Taxable Value: the SEV annually capped as long as there is not a transfer of ownership.City Assessors are charged with determining how much property values have changed each year.

@Drew Sygit The verbiage in our management agreement is as follows: make, contract, and/or supervise repairs, alterations, and/or decorations to Property; to purchase supplies and pay billstherefore; Broker agrees to secure the prior approval of Owner for all expenditures estimated to be in excess of $500.00 forany one item, except monthly or recurring operating expenses and/or emergency repairs in excess of the maximum, if inthe opinion of the Broker such repairs are necessary to protect the property from damage or to maintain services to thetenants as called for in their leases; in the event that Owner is unreachable after multiple contact attempts for more thanforty-eight (48) hours to approve a repair in excess of the above amount, Broker shall be considered authorized to makesuch repair.I've been contacted about high ticket items in the past but these "make readys" are done without approval. 

In real estate, blunt honesty often protects people from common pitfalls or predatory advice that oversimplifies the challenges of investing.

Our 4th Amendment Rights as landowners protect us against regulatory takings and that is why lots that were created prior to zoning or zoning changes are typically grandfathered.  

The people at Capital Syndicate do everything they can to protect and promote you as a business partner (not a "bird dog"). 

Look at median household incomes, look at market economy base and diversification, look at what's being done to protect and grow economic performance, just run the #'s and the message should be crystal clear. 

A well written management contract should clearly spell out what is expected of both the PMC and the owner, to PROTECT both and avoid misunderstandings.

That being said, anything can happen, but if you run your numbers accordingly, make sure that your contractor is trusted and do all the other stuff you'll be a little more protected than the next person flipping that does not do this type of calculation.