Purchase price: $235,000 Sale price: $450,000 Contributors: Michael Lee Another successful Fix & Flip completed out in Monmouth County, NJ.This project was a success and a great learning experience working directly with the Buyer to customize the property.

I myself just buy in my personal name - as long as I am insured - treat my tenants like customers and abate any violation issues and have empathy for my tenants who are good people with some financial issues - usually I don't have any serious problems.

I will need to replace cabinets or get drawers custom made, and have space professionally cleaned.  

I have had customers come to me and say "Hey, ole so and so says he can do it for this much." 

Depending on the loan amount, they will probably want a 15-25% equity injection.You can also utilize your health insurance claims and/or medical equipment as collateral for a secured line of credit. 

@Dean SmithIn determining whether short term real estate rental income is treated as business income, here are general considerations (of course you will want to review your specific situation with your tax advisor): The average period of customer use is 7 days or less.The average period of customer use is 30 days or less and significant personal services are provided with the rental.

If they do, based on them claiming a doctor recommended a "service" animal you can continue to charge a pet fee.  

Here are the knowns:Rent per tenant: $750 (this is below market value due to deferred maintenance, I believe $1,000-1,200 is more realistic)Property taxes: $900 per yearLandlord insurance: $1,000 per yearLandlord pays water/trash: claims to be $125 per month (will ask for proof)Landlord is in charge of snow removal and mowing lawnThere are 5 electric meters, each tenant pays their own (landlord covers hallway and outdoor lights)What I plan to ask for is the copies of the leases, copies of the utility bills, and copies of bank statements showing the tenants are actually paying on time.

They own the consequences.By the way, with over 300 rentals, I get a couple instances a year that may qualify for a renter insurance claim.

It seems like a truly unsecured note would have been fine. but the lender might have felt seller could still somehow had claim on the property and were not sure of how to verify implications of the note and did not want to mess with it.