The numbers are: Price $600KCap rate: 7.0%NOI: $41, 625One tenant lease is up in 7/2021 (Gross Lease) and the other 9/2026 (NNN Lease). 

Depending on the market I like to do a hybrid approach of the sales comparison and gross rent mutiple.

I feel like once the VA is doing these things well and I've made an acquisition or two that covers the cost of them, I should be able to hire a "boots on the ground" 1099 employee that will show properties, interview tenants, do yearly walkthroughs, and check in on rehab projects. 

I negotiated one deal that was just gross.

They generally have a good idea of what your gross income could be based on type of property, number of beds, location, pool, etc.

California charges a minimum tax of $800 a year per LLC, and more if you have gross receipts in excess of $250k.

@Nathan ShanklesWhat does your 224k equity represent as a percentage and what are gross monthly rents?

You send him a 1099 for "non-employee compensation", equal to his fee.

@Randy Dargan I still don't really understand the desire to BRRR properties, especially in these currently high market prices.I was explaining this in another forum but here goes:ARV of $140Refi at 75% - $105,000 gross (will have fees associated)Loan terms will likely be 20 yr am, if commercial, and in the 4.75% rangePrinciple + Interest =                 679Management Fee =                    140Vacancy 5% =                              70Repair reserves =                        70Capital reserves =                       70Taxes (Using Delhi @ 80k) =       170Insurance =                                 50Total =                                   1,249Free Cashflow =                         151Annualized cashflow-              1,821# of years to make back 40k from flipping, 22 yearsTax benefits will vary in value to each person. 

If your plan is to rent both units, then the appraisal should be relative to the gross rent.