They will (and lenders will) look at the purchase price, costs of materials, hard costs of labor and permits etc. and allow no more than about 20% as a contractor fee/investor profit in shorter term refis.I agree with Jerry, make sure you can get the take out loan before you take any HML money, that or that you can sell it quickly. :)

Lets say a month of P&I, taxes, insurance, keeping the utilities turned on and the lawn mowed.

At the time we did not have a lot of capital, but finally found a bank that was willing to lend to us (rehab costs included), but we still needed something fairly cheap to be able to make the down payment and have funds left over for reserves and paying other expenses (utilities, insurance, mortgage payments, etc).

You can utilize a C-corporation to buy your flips, you can also invest personally as well.

Here in the DR, I have spoken to most that utilize the same setup, right now im trying to target areas that are newly renovated and have gyms and elevators.

The agents see all this free stuff as a way to save money.Instead you should get your own website, own materials, slogans, etc. so that if and when you leave you simply change the brokerage name rather than starting from scratch.

(permits, fees, bringing in utilities, curb, gutter, sidewalk, school fees, design fees, etc.)

It already has a back entrance into the basement so I was looking at turning the basement into an 1 bedroom apartment.So my question is should I split the utilities?

:)Tiled areas = 362sqft * $5/sqft(material/labor) = $1,810 I rounded to $1,800flat as I know I over measured in places and $10 bucks isn't much.That seems like a reasonable estimate for tile.

I've been reading material (mostly BP blog posts and forum entries at this point) and I'm very excited about the possibilities of investing in real estate.I currently work as a technical consultant in Raleigh.