Sit him down and give him an attitude adjustment or he will not last long in this business.He is going to be a detriment to your business.

My rate was 4.5% with 10.5% cap, with 2% max adjust per year.

Plus the fed futures curve, current market action notwithstanding has terminal fed funds at like 2.5%, putting prime at roughly 5.5 and your rate still under 6 once it adjusts.

Don’t forget to factor in for health benefits, self-employment tax, etc. the bank will definitely adjust your contract salary to make apples to apples comparison.

We were able to pull the demo permit easily, but have some minor adjustments to make to our site plan for building permits.

I have found it is easier to get an unsecured credit line that a equity line on a property.Also, keep in mind, rates are incredibly low, it might make sense to refinance your first mortgage, pull out equity that way, then get locked in on long term rates versus having an equity line with a rate that will adjust. 

Adjust your ideas and recalibrate your assumptions accordingly.

If you are not retaining the services of the property management firm, I would insist the funds be transferred to you as an adjustment at Close (your attorney should be able to make this happen).  

GAAP consistently has to be tweaked when ANALYSTS with many degrees from some of the best schools in the country adjust accounting figures to determine real value.

Most investors that get an inspection find that their projected rehab numbers get adjusted after the inspection is completed.