If items get torn up then we call them out and they get fixed or replaced.

It's my understanding that the standard model would be to fund a project like this (acquisition and construction costs) with your own financing, generally via construction loans with personal guarantees of the principals, thereby taking on all of the risk in the event of poor project performance but also capturing all of the return if the properties are sold for a high profit.  

If you've already accounted for foundation issues and other larger items, which it looks like you have with a 40k rehab budget, there's less of an unknown.

Rick captured a lot of what I was thinking, so I won't repeat any of that.I will point out that old houses will have hidden defects, and a $10K contingency on a $150K hard bid really isn't very much.

@Chanté Owens It's not a legal requirement in California to carry E&O, but a brokerage specific item so you're pretty much right that all Realtors will carry E&O insurance.

And no I was not saying in every situation you have to store the random personal items that may have been left behind, just when it is obviously more than an old couch they don't want ect.

Painting is generally a deductible expense when done as a maintenance item.

By "degree days" , its in a computer program that calculates the amount of typically used based on the temp , efficency of the furnace , sq footage , number of occupants , type of construction , plus a few more items .

A good one will provide you an itemized statement every month and year end for your tax purposes.

The company reserves the right to except additional items and/or make additional requirements after reviewing said documents."""