He's using a lender in California that is giving a huge discount ($3000 credit towards origination charge).

Initially, a pre-approval will help, but it's not a commitment on the deal, for that it will need to be appraised and accepted prelim title, some lenders charge for a commitment credited to the loan origination, some don't credit back but may have a fee, so not taking the loan and going to a HML can be expensive.

When I purchased a duplex, I decided to keep the existing management company in place which may have been a mistake as I didn't spend much time checking out their reputation.The monthly fee charged to LL seems to be 10% but this can and should be negotiated to a lower amount of 6-8% depending on the number of properties managed.

Goal is to have 4 or 5 units at the moment.My question:Is it ok to give out a loan (from my personal savings) to this LLC as start-up capital and charge interest from it?

Some things I learned along the way:-I'm not good at marketing-I need a pro to do that for me-I was too proud of the property and had it over priced-I learned that self managing a property long distance can be done, but it is a royal pain in the rear-A GOOD property manager is worth every dime they charge.

I meant to charge late fees, but he was always contrite and apologized and so I never did.

Great list @Ky Sharp If you are confident in your analysis and buying all cash the appraisal/bpo isn't necessary but an appraisal may help you negotiate if it comes in low.We like to have two or three mgt companies walk the property during due diligence and propose their mgt plan that includes a capex and/or repositioning budget.If the subject property and all properties nearby are the only things ever built on the land there you may not need a phase 1 environmental but if it's a large property and/or you're bringing in outside capital (lenders or equity partners/investors) having one demonstrates your thoroughness and professionalism even if one is not required.If there isn't a recent survey one it may be required but if one is not required getting a new one falls under the same considerations as above.We have gone to always having an engineer do the inspection even though it can be 2x what a non-engineer inspector may charge.

@Janaye Joyner maybe clarify if your friend was charging you a flat fee listing for the $200-$300 or giving you MLS access for that amount.

As to 2 or 3, I think any can be successful, but you can charge a lot more for a 3 and may have higher demand.

How much do you typically charge as non-refundable deposit as well as monthly pet rent?