I have the seller sign a Letter of intent to Lease and To OptionThe letter of Intent covers...Address, Rental Term, Renal Payment per month, Security Deposit, Possession Date, Option Sales Price (could new appraisal), Option Money (usually 3% or $5K min), Representations, Warranties, Covenants, and Indemnification, Legal Effect, Notice of Intent to Assign, Option Period (45 - 60 days)I have them sign the letter of intent (LOI), it goes to my attorney, and the attorney prepares the paperwork.There is an option release disclosure document that discusses that the buyer will be responsible for the following fee’s to be paid out of escrow at closing, which are for the release of the recorded notice of option, the assignment of negotiated purchase price, and the negotiated rent.2.

I wanted to add the cost I said for your kitchen is based on having to do primer and and 2 coats to cover the blue.With my units I am going over white that is worn down so I don't need as much paint to cover a larger area.Some nicer quality paints are mentioned in some other posts which I can see using in a flip or a really upscale high end rental area where the tenant demographic is different.For rentals I use paint that is cost effective and will pop and carpet that is made for wear and tear for the type of tenants I have.All they usually care about is it's "fresh and clean".

Being on a busy street shouldn't have a negative effect on renting but will have some draw backs when it comes time to re-sell.

I've made offers on several short sales in the past but never actually bought one.I've been told to put language in the contract to the effect of "property will be delivered vacant and all of owner/occupants' or tenants belonging will be removed before closing date".What about the final walkthrough?

Basically what happened was the builder did not complete the project and built only about half+ of the town homes, and some are not paying HOA now, so effectively there is a 50% HOA deficiency.

But for now, I'm going to build a team by networking and research effectively on way's to avoid mistakes.

In fact, I would think that if they were flipping their first home and you cleaned out someone’s hard-earned SDIRA thru foreclosure of their flip, you could still be in a world of hurt standing in front of a judge.Jeff

His effective tax rate may be 20%, but his marginal tax rate, and what this would be taxed at, would likely be higher.

It ignores vacant unit, clean up and marketing between tenants, eviction costs, damage, routine maintenance like the roof, hot water heaters, appliances, lawn care, snow removal, etc etc etc etc that are all real costs whether on an annual or some other recurring basis.In most places, if you can offer an investor a property with little deferred maintenance that is generating rents at 2% of purchase price, they are going to jump all over it.

But, by specifically stating a "Cash Flow" number that doesn't include these expenses, you ARE ignoring them.To not ignore them, your cash flow statement should be, for example:Cash Flow: $309 MINUS OPERATING EXPENSESAt very least, you should include a disclaimer to the effect of, "The Cash Flow and ROI numbers do not reflect the inclusion of operating expenses; actual cash flow and ROI will be lower."