To the best of my understanding it would involve payroll and all the paperwork involved with it, ie taxes etc.If I were you...

I have been involved in real estate casually for several years, always as a side thing as related to our family goals at the time.

But if it's a sub 2 deal, I like to make an appearance to make sure everyone is on the same page and fully understanding what we're doing.Also, if it was a particularly good deal for all involved, I might come snap a picture or two and gather some good feedback for the "testimonials" page on my site and/or newsletter.

I own several rentals and don't have an LLC, DBA, license, or office and I have a regular full time Job that doesn't involve RE.

I've been involved in real estate for over 40 years and this is the first time I've ever thought of this situation!

My question is should I put DW & GD in or is there to many maintenance issues with these items when renters are involved?

I can see converting to an in-unit electric furnace, but would have to check on the cost involved (yeah, another bump to rehab cost).

Now the cap rate becomes 7.17%, cash flow = $310/mo w/o mgt co. involved, and cash on cash is 9.28%. (25% down pay + $4,000 closing + $1,400 upfront cost, total upfront cash = $40,400).

Remember Real Estate agents typically have an exclusive agreement to buy or sell and will get paid if a transaction gets done independent of who other parties involved are, while lenders only get the origination fees if the transaction is done with that lender.As a “Colorado Hard Money“ lender for non-owner occupied investment properties, we feel it is fair to charge a small fee to cover expenses related to estimating the value of the property, estimating the repairs, inspecting the property, and credit and background checks.

First, NO flip is eligible for 1031 treatment nor is any property that was purchased with the intent to resell within the short-term(365 or less).Any property that you rehab with the intention of selling is considered being involved in dealing.If the property is held and you do no work to it or rent it and hold it for a year, that would be considered a investment, as you were holding it for appreciation.