Providing a decent shop can make a tremendous difference, if you can justify the cost of the space.

As far as the do's and dont's, you must follow the IRS rules and guidelines as they pertain to qulaified retirement accounts.I do have another thread here on BP talking about self directed IRA's, you may want to read up on them.

As a rental, awful.If you use the 50% rule, it looks like this:Price $450,000Payment $2994 (7%, 30 year)Rent $3800Expenses $1900Cash flow $-1094If you're very optimistic, and use 33% for expenses, it looks like this:Expenses $1354Cash flow $-448So, if you're really lucky, you'll lose only about $500 a month.

Is there a percentage formula to use, bascially does the rules change since they are going through a real estate company?

`(h) Standards To Protect Against Adverse Selection- `(1) IN GENERAL- The Board shall, by rule or order, establish standards and policies to require the underwriter of the insured loan to provide such representations and warranties as the Board considers necessary or appropriate to enforce compliance with all underwriting and appraisal standards of the HOPE for Homeowners Program.`(2) EXCLUSION FOR VIOLATIONS- The Board shall prohibit the Secretary from paying insurance benefits to a mortgagee who violates the representations and warranties, as established under paragraph (1), or in any case in which a mortgagor fails to make the first payment on a refinanced eligible mortgage.`(3) OTHER AUTHORITY- The Board may establish such other standards or policies as necessary to protect against adverse selection, including requiring loans identified by the Secretary as higher risk loans to demonstrate payment performance for a reasonable period of time prior to being insured under the program.

That's just the rules around here.

Hypothetically - Chances are, some houses that are listed for more than 120 days would not have been maintained well, they would be sold as-is, banks will be willing take a very low price as none turned out to buy that house - That would be something you might wholesale.Dont look for 1% rule or 2% rule when you want to wholesale.

I personally think the 50% rule expenses are high as I am doing my own managing and 'fixes'...

Buying , Fixing, and Selling, 4 month time frame, (I hope)I am not a handyman, so estimating repair cost is a reach.A poster on this site suggested to use the $5K rule to estimate repair cost5k to fix/update any major house component.

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