We're finalizing our operating agreement now, and things should really be taking off quickly for me if he's serious about the amount of money he's going to be investing with me.

We did not receive their application and choose to let them rent.We do not have a hard & fast rule, but tend to operate the same way each time by default.

In your opinion, do you think it is safe and conservative if I were to factor 50% of gross rental for operating expenses?

That is absolutely the reality of the business.HOWEVER, having said all that, people do succeed in this business if they learn the business before they buy; buy at a BIG discount; understand the operating expenses; understand cash flow issues; and have the temperament to deal with the constant problems.In addition, I disagree with you on a few of the things you said.

I have been very happy with ringcentral.com If you want a live operator try patlive.com

The mileage allowance is lower than the cost of OPERATING a vehicle, so real "business people" don't automatically get a Benz or Beemer to drive around looking at property.Meals and entertainment-you only get to write off 1/2 on these but you shouldn't be eating at "Chez Expensive" when working on flips anyway.I'm sure that "some" people might accidently buy something for their residence and have the receipt fall into the folder for one of their flips.

Contact the broker and ask for current operational numbers.

He says that multi family investment property loans are based on the operations of the building (rent/expenses) and not your income.

LLC's have operating cost and you don't want to incur those costs then never purchase.

I have yet to see or hear a single guru talk about the difficulties of the business or discuss the truth about operating expenses, cash flow; or other serious matters.Having said all that, you will certainly read many books and articles while acquiring your education and starting with one book as opposed to another isn't terribly important.