Does he own this house free and clear?

When the borrower does not have impounds setup the servicer must chase it down.Hope that clears it all up for you.

Jonathan look up the taxes and divide by 12 to get monthly tax costs.Look for the HOA docs to see if there is an assessment and how much.Usually if you find a listing on MLS in that subdivision there will be some houses and it will list association dues monthly or yearly.For instance if taxes are 1,000 and HOA 1,500 then you have about 208.33 a month in costs.If you buy for 4,000 and hold for 2 years you have to get at least 9,000 in 2 years time to break even and even more with closing costs etc.That money will be dead not generating a return for you.You also need to know the soil sample and build ability of the lot.This will be a factor from who buys from you if they want to build a house.On the MLS you can see what developed lots are selling for.Is this lot developed and cleared with pipes sticking out of the ground or does it still have all the trees and uncleared and ungraded in it's natural state??

Rents here are clearly above $500 per unit, so being less than 2% is not necessarily terrible.Originally posted by Manuel Acuna:...On here they also like to say, over time, 50% of your rental income will go to rehab which would be $1832.5/mnth.

I have helped many people throughout my life and 50% are not as clear or altruistic. 

When I have a buyer for the 80 acres, will that buyer not want to know that I own the property with a clear title?

In the end, the way to go is whatever the two of you work out as fair, just make sure it is clearly documented in the operating agreement.

That's done in the contract itself.So, if the contract indicates that the seller is required to provide clear title and/or a survey prior to closing, he's still required to provide those things, regardless of the rider.

I am clearly not at 40%.

(The Maryland Real Estate Commission has a nice article on their website that clearly lays out what a realtor can and cannot do.