This would include standard purchase agreements and related documents as well as a Rental agreement and all that you want to attach with that...such as pet/no pet and assistance animal policies, house rules for room or multi-unit rentals, utility responsibilities, etc. as well as actual Rental application and your criteria and process for reaching approval/denial and the required Adverse Action letter.

The seller needs to “wallow in his own sweat” to understand the adversity ahead.

I mean, shouldn't the focus be on how to overcome your fear to even get started?

I wanted to start this thread to document some of the challenges we're facing and hopefully later post some tips on how to overcome those challenges (assuming we do :).Here are some of the challenges I posted today on my blog (reposted here so we can start the discussion here on BP):We closed on the purchase of The WI-1 House a couple weeks ago, and I'm up in Milwaukee again this week to continue building the team and preparing for the rehab.

It's hard to overcome stupid so prepare yourself to actually KNOW real estate and all the different opportunities this industry affords. 

The line on the appraisal that will trip you up is "Are there any adverse site conditions or external factors (easements, encroachments, environmental conditions, land uses, etc.)?"

How risk adverse are you and do you want hands off??

So, if you're in the 25% marginal bracket and your state/local taxes are 9% (for example), you should keep aside 34% for taxes.That said, this is tremendously conservative, as your marginal rate will only apply to your highest amount of income (most income will be taxed at a lower rate as marginal rates are on a sliding scale) and you'll likely have deductions that will offset some of the income.So, if you set aside this amount, you should have some left over come tax time, but should also be good in a worst case situation.If you want to be more precise, fill out a 1040 with your actual income and deductions after each project and see where you stand.

But even then, it seems you can never overcome the hurdle of $11k property taxes.

They tend to not have the self-motivation required to persevere through adversity.