It depends on how you split the revenues.If the house is free and clear, you two should decide if you get to bank all the money after paying expenses (taxes and insurance) or if you have to split it somehow in favor of your rehab work or just 50/50 the whole time.Also, if your friend decides to sell it year 2 or 3, and you still haven't recouped your rehab funds, do you spit the proceeds of the sale?

Have you received from the seller the rent roll and his yearly statements for operating expenses etc.

and nothing but the extra expenses (catching up on the back rent) & "unreasonable" rules (no pot, no smoking, & no extra people) she might chose to leave.

They buy the property and then get hit with unexpected expenses within the first few months.

Use my free editable Net Worth Worksheet that I created to track all my assets, liabilities and expenses and what I still use today to keep my finances in line.Line up your professional partners.

Use my free editable Net Worth Worksheet that I created to track all my assets, liabilities and expenses and what I still use today to keep my finances in line.Line up your professional partners.

The hml is for $50k which includes 30k rehab expense.

@Mark Anderson, you have to do your own due diligence and insist upon seeing actual expenses, income, current leases, etc. 

No you do whats called a credit bid.. you already have your money in the deal and your expenses  and tax's if you paid those.. so what ever your owed plus late fee's and interest and foreclosure costs any money paid to senior lender and insurance any property tax etc.. all that is added into your credit bid that your entitled to.. your not entitled to more though. 

Rationalization is the most expensive word in the dictionary, and should never be used by any REI...ever.