I'd do an analysis of whether it would cost more to just pay him upfront as opposed to the equity stake but if you have that extra piece of mind and feel he is awesome at managing jobs and you can spend your time elsewhere then I don't see why this isn't a good agreement.3)Check out your comps.

Question: What made you go with a private lender on the second flip as opposed to using the same method as first one?

i love my job and my company so i definitely wouldn't do it if my employer was opposed to it.

We do have a metal roof, which is one thing to consider because there is no attic space the roof can't radiate that heat into the attic and then allow it to vent so the exterior roof temperature tends to be something like 15-25 degrees higher than a roof on a normal attic.

I am in the process of fixing this by replacing the vapor barrier with new plastic sheathing, replacing the fiberglass with foam boards, and air sealing the entire crawl including the exterior vents, and creating an air tight and insulated entrance door.

remeber the story of "big bad wolf and the 3 little pigs".TimelessNot much exterior maintenance. 

Realtors are educated to be sales oriented, ethics can be skewed within the word of each code agreement of any profession and generally they will look more to "how do I do accomplish this as I'm motivated to do" as opposed to "should I be doing this" while looking at the intent of rules, regulations, laws and my code of ethics.

If exterior is in bad shape and roof, windows, parking lot, main water line, tree root issues pop up that could add thousands per door to the property.When you use high debt service on vacant properties you want a fast lease up.

So this post is not for those who oppose this method.My question is when I have an item that is not fully depreciated but becomes obsolete (broken microwave) I have done a journal entry to move the remaining depreciation of the item into a repairs expense account.Do you feel that is the correct procedure?

The repairs weren't too bad, and the property was overall in good shape (roof, HVAC good) but a bunch of little maintenance things and exterior paint.Each unit was 3 bedrooms, 1 bath, about 1200-1300 square feet each and were very clean.