You can figure out the terms of the loan and just talk to the title company/closing attorney and make sure that all appropriate documents are drafted and filed (mortgage, note, assignment of rents, etc.)If you are wanting to get into hard money lending (advertising yourself as an HML to a wide range of investors) then you'll want to formulate a business plan and a set of lending guidelines and stick to them.

Banks create guidelines and overlays that help interpret these types of transactions that come through their pipeline in hundreds of thousands.

@Martin Zawarski the limits are in regards to the Fannie/Freddie underwriting guidelines.

Find out the guidelines from your lenders and make sure you only bring strong deals for them to consider.

This is just a guideline, but a good way to estimate your cash flow, and expenses way above or way below would throw up a red flag.for your example .

Its simply a matter of their underwriting guidelines and sloppy handling of this deal

Ya sure, not doing a inspection is a bit of a gamble but if you know what to look for or are pretty handy I would feel comfortable without doing one.

Assuming it is 400sqft expect to pay ~$500 in materials and another $300-500 in labor.6) The cleaning people I use do a good job, and for a thorough initial cleaning on a 5200sqft house they charged me $240 (I tipped them another $40 for going above and beyond my expectations and bringing things to my attention that I didn't notice and taking care of it).There you go, that list will be about as accurate as my next lotto picks ;) Really though, just use it as a VERY base guideline to estimate costs.

A lot of subdivisions around Morgan State have those, and they have very strict guidelines for outside remodeling projects that need prior approval, specific colors and styles of roofing, windows and paint.Good luck!

It is not a TON of cash flow for $11,000 invested, but it you've accounted for all the expenses you should have on your radar, and still come out + which is good.I'm sure you've read it here, but a lot of BP'ers use the 2% rule as a rough guideline to determining if a rental property makes sense.