.  ;-)Here are some other BP links that may help...http://www.biggerpockets.com/renewsblog/2014/04/21/estimate-rehab-costs/http://www.biggerpockets.com/renewsblog/2009/11/5/...http://www.biggerpockets.com/renewsblog/2013/03/17/tultimate-guide-house-flipping-costs/Now, as for practical advice, I have a spreadsheet where I have broken a house down into components (see below). 

It's always good to look at credit history and practices for a more rounded idea of how the debtor treats credit.  

Another aspect investors need to be aware of......anticipating again, is when an owner has a buyer and folks call us to put a deal together, if you're not a Realtor you can be on thin ice as you have no interest directly in the transaction, there are other issues too, the unauthorized practice of law is a favorite for prosecutors.

This is the practice to follow for all applicants who are self-employed or paid using 1099 (rather than W2). 

Goal would be to create a win-win of making tenants aware of solid fiscal practices (w/o being condescending) for a better life for themselves and indirectly also hopefully helping them plan to have money at the beginning of the month for us. 

I think using a script is an excellent practice at first.

I know laws seem easy when you read them, but the actual practices often are much more complex.

We are practically neighbors.

But I'm assuming that we can write the origination costs off as a "rental business expense" as it will be used to engage in rental real estate practices. 

Its going to be much more interesting and will whet his appetite into wanting to put it into practice.