I try to make the comments somewhat humorous....Fortunately it is a small percentage.

So... a CFL being a Mortgage Banker offering the rates of that specific bank...and a Mortgage Broker being someone that shops for the best rate...that being said...if I am correct...what has been the difference in percentage you have seen being offered on a 80% LTV 800 FICO...A+ borrower.250, .375, .875

As you go up in percentages you’re taking on more risk because there’s obviously something less boring about the note. 🙂  Perhaps it’s a lower value contract for deed/land contract, or a re-performing note with very little seasoning or maybe there’s very little equity in the property.  

I’d probably assign some sort of square footage variable to this too, but I usually just budget it as a percentage of income, since that what the bank is always going to do, and if a bank can underwrite for it, it’s good enough for me.Roofing seems too cheap, paint and cabs seem to cheap, and almost always my biggest expense on everything is plumbing, so I’d raise those. 

@Naveen Koorakula the caps are usually those CLTV percentages Ryan mentioned very often up to $750k or even $1M with a more simplified process if you stay under 500k.

This was the criteria I used (it's heavily based on the Best Ever Syndication Apartment book written by Joe Fairless):Criteria UnemploymentGet this information from Census.gov under the “Selected Economic Characteristics” data tableCalculate the unemployment change over a five-year period using the unemployment percentage for the city for the last five yearsIdeally, you want one that is decreasingA low, stagnant rate is acceptableA high and/or low increasing rate is unfavorablePopulationBoth the city and MSA population data can be found on Census.gov The city data will be under the “Annual Population Estimates” data tableThe MSA data is located in the “Annual Estimate of the Resident Population” data tableCalculate the population change for both the target market city and the metropolitan statistical area (MSA) using the population data for the last five years for the marketAn increasing population is idealA stagnant or decreasing trend is unfavorable, Especially if apartment supply is on the rise Population AgeFind this data on the Census.gov website under the “Demographic Characteristics” table.

You might also have to give the owner a percentage of the gross.

It seems like it would be very easy for someone to build one by taking each item as percentage of the sales price. 

What percentage of revenue do they expect to provide their services - finding renters, taking care of repairs, etc.? 

By the way, did you know that if you ever sell your house, you will get (lot) higher percentage of your money back from kitchen remodel than from the deck work.