Basic cosmetic workLessons learned?

@Martin Saenz   I think though you have to break note investing into categories.. not all note investing is the same.you have NPN investing that is wildly different than new orgination note investing.. or investing in a note fundOr like in my Day when I ran my HML company in Oakland doing new origination for builders and fix and flippers.I had 250 clients 50 million under management.. and while we had an occasional bummer  95% of them worked out.those notes for those investor returned 10 to 12% pretty routinely and many times 15%  Late 80s HM rates.and our investor were totally passive.. they entrusted us the broker to do the underwriting etc..so then you get this cool new shinny object called crowdfunding.. and the debt deals they do IE new origination are all note deals.. with varying degree of success.. but totally passive to the investor. 

What part of Ohio are you from...we work with LA clients buying in Ohio routinely...very interesting you are doing the opposite.

What looked like mostly a cosmetic rehab turned into gutting the entire bathroom, closing in a garage door, re-sheet-rocking the entire kitchen and re-grading the entire backyard.

Purchase price: $27,000 Cash invested: $30,000 SFR purchased as short sale, required minor cosmetic updates before renting.

Minor cosmetic work What was the outcome?

@Brendan Ashton here is an explanation of capital expenditures: http://www.noradarealestate.com/blog/routine-repairs-vs-capital-expenditures-capex/

The rehab is cosmetic and should only run about $5k.

But in the federal court system, it takes very little to establish jurisdiction over an out of state defendant.I suppose for some "good" news --- most competent lawyers I worked with won't take a routine litigation case without the client providing a retainer.

If the rehab is beyond cosmetic, a Builders Risk policy may be needed.