I just personally took a look yesterday and I mean in my opinion the fire damage is what will most significnatly impact the rehab costs but it is also the strongest leveraging item in the buying price.

Not getting a report now could costs you many times over later.Now the timing of when you spend that money on that item depends on other things.

So you should be increasing your basis in the property by any capital items (greater than 1 year of life; bathtub, door, faucet, etc.), whether you are 'on the market' or not has no bearing.

Any advice on the following would be a huge help: - Fee Structure (Residential structure is 1 month rent for leasing, 8% management and $300 renewal - Operational items that may be different from residential.- Legal, risk management issues that may be different from residential.Thanks in advance for your help!!!

These items are not essential to the rehab and not required by FHA, thus okay to leave out of the 203k. 

There has been talk about the REIT's model not being sustainable and another round of expected earnings to start moving to the neutral or loss category in the future again.With that information some investors are selling off and moving into hard assets and cashing out the gains over the previous years.Your other properties you are buying are at about 1% to sales price ratio.

Again, suggestions of items or lines to put in the lease is great too.I just listened to a BP podcast where a landlord had over 20 pages on his lease!  

This certainly seems too good to be true.So...what am I missing about this business model?

Towels and wash cloths go missing, so I frequently have to buy more of those items.

There are other matters which may not be insurable, so read the exclusions carefully and the TI agent will inform you of items and risks associated with any exclusion.