Thanks for your reply!

Contact an attorney and they can provide you with the form to ensure everything is done correctly.

After the rehab, I want to rent out the property and put conventional money on it, I assume the bank I get the new loan from would look at my debt to income ratio correct?

Thanks for the reply! 

I don't think It would work If I had to hire contractors.Thanks for the reply's.

I just want to verify that this statement is correct with people who have encountered it.

I am newer to property management thanks for the reply to the post.The problem I am having is no contractor can tell me how water is getting into my garage other than its coming in from the foundation but where?

The lender pays them with your money instead of you paying them yourself.escrow analysisOnce each year your lender will perform an "escrow analysis" to make sure they are collecting the correct amount of money for the anticipated expenditures.escrow disbursementsThe use of escrow funds to pay real estate taxes, hazard insurance, mortgage insurance, and other property expenses as they become due.estateThe ownership interest of an individual in real property.

@Theo Hicks just to be clear....The 8% preferred return is 8% of their total cash outlay/investment and NOT 8% of the cash flow after OpX and debt service, correct?

Surrounding homes are around $200k + with similar plot size and sq. footage.I put in 40k desired profit to cover $15,000 paid to lender plus in the closing costs a point fee of 3% (Agent fees portion)These numbers look average correct?