Marquell Jones also may I ask how you came up with $20 multiplying it by the sq ft to equal your repair cost?

I have an opportunity to JV with 3 other investors and I want to know how best to spread the risk and reward, fairly, while securing everyone’s stake by the real estate.We’re looking at a potential deal that looks like this:ARV: $400k-$425kMOA: $165k RB: $160kTarget net profit: $75kConstruction time: 6 monthsInvestor #1 has the acquisition funds.Investor #2 has the repair funds.Investor #3 is the General Contractor.Investor #4 (me) is the Project Manager & Listing Agent.If the GC and I waive our fees in exchange for an equal percentage of the net profit will that be fair?

The military base and industry growth is vital to acquiring good tenants and positive cash flow.

Why is it that we say rents received from the property equals only 2% of the purchase price instead of multiplying the number of units in the property by the amount of average rents to determine the approximate amount of rents that will be received?

We got an FHA loan on it and since my wife is a realtor, we got 3% right back, so we put very minimal down.  3 of the 4 rents equal PITI so we'll live there for a year then move out.  

I am glad to report that so far 2016 is equally drama-less, only with slightly higher rents.

Another key thing is understanding tenant behavior here; it's vital for profitability and mitigating your vacancy risk.  

It's best to have set rental criteria for your applicants and apply this criteria equally to all applicants. 

I get that a 4 plex that each have 1 bedroom would equal 4 units.

It seems like you were suggesting to take the extra money I have left over that was set aside for the mortgage, and do something with it to at least earn a return equal to my mortgage rate (4.375%)?