Scenario:Investor purchases building in North Miami in fairly dilapidated state.3200 sq ft block construction with no doors, windows, electrical, drywall etcAt time of closing investor is informed an additional $5000 is payable to Miami City as a 'bond' and the property must be fixed up within one year.Repair quotes for property vary from $110,000-$180,000.Investor flies in contractor from interstate who rehabs entire property with everything meeting code standards, for total cost of $35,000.

Great debate on such an interseting topic.ARV should be the estimated market value less costs of repairs and improvements (according to the plans and specifications assuming workman like standards being met) to arrive at the current value before work.

A standard homeowners policy would not cover you in the vacant scenario.

The insurance is for standard landlord policy.

At that point your looking at an all in price of 60-75k (depending on what your rehab standards are.)Most of our properties rent for $1000 up to $1200 so even at these prices- depending on your terms/interest rate- I think the returns are still pretty good.My partner and I own 35 properties in South Redford.

But that means I have to hold on to her $ until that resolves.I am thinking two month's penalty in the standard lease.Would appreciate any thought on this, as well as other potential impact from a fully paid lease.Oh, is a fully paid lease shoves all income into the year she paid?

Such a quiet title requirement by title companies is standard on tax deeds.I see from your second post it had a mortgage, price of the quiet title action just went way way up

Tweak things and do what works for you.Would I have gotten 2 deals if I had followed the standard exactly?

Dave:It will really depend on the tenancy act/law in Maryland.Here we have a standard lease form (government mandated) in which the term and period of the lease are specified.

Set up the standard one side to be all about you, your philosophy and the "why should I buy from this guy?"