Make sure you outline house rules and screen your potential tenants carefully!

Following his advice the best we could, we found a rent ready home in Georgia that slightly exceeded the 1% rule and pulled the trigger.

Pay them like 50 - 100 bucks instead of paying for a full appraisal. 

I don’t like to have a loan of more than about 50-60% of ARV after the repairs are done.

They have put quite a bit of rehab into it and our out of funds,  They are asking for a 50-100K 6 month loan and are offering generous interest.Myself and two other personal investors want to commingle our funds for the loan and share in the interest on a proportional basis.  

I live in Atlanta Georgia where the market feels a bit saturated and it’s pretty hard to find deals using the 70% rule.

A quick glance at housing affordability in AustinMedian Household Income App (Forbes): $73,493 ($6,124/mos)Cost of Living (Forbes): 15% above nat'l avgMedian Home Cost (SFR-ABOR Stats): $302,250Assume 5% Down Payment Conventional Loan- 30 year amortization- $15,112.50 down pmt + any closing costs• Percentage of residents with less than $1,000 saved: 56%• https://www.gobankingrates.com/…/…/americans-savings-state/…- $287,137.50 amt financed- 4.375% interest rateHow the payment looks:PI= $1,433 mosIns= $105 mosTaxes= $458.33 mos (Assume $5,500/yr)HOA= $25 mos$2,021.3/mos PITIDTI’sHousing ratio= app 33% @ median income ($2021/$6124)FHA should be at 31% or less with Conv/VA/FHA being around the same although all have exceptions in placeTotal DTIThese hover between high 30%’s to manually underwritten total DTI’s in the 50’s or higher depending on the programs@ 45% Total DTI Ratio and assuming the above PITI pmt that gives a borrower approximately $734 per month in all other creditor debt (cars/cc/personal loans/etc)These numbers are not perfect but are rather a quick illustration of current housing affordability in Austin for Retail Buyers.Summary: Housing is becoming less and less affordable in the COA for end retail buyersAssuming increases in property taxes/insurance/interest rates on the horizon how does this affect us as investors?

would investigate my petition and provide their ruling at which time the rent may or may not be allowed to increase.Anyways, any help here would be great.

Failure to memorialize the contract in writing does not remove any of your obligations to the tenant, however, absent a written agreement the "rules" of your lease will default to state law.

I know it's the broker's job to sell the property and their pro-forma's aren't to be completely relied upon, but a 50%+ reduction in insurance cost seems pretty high...