PM fees seem like they will be adding up to $7500+ a year ($5,400 in % fee and another $2000 in new lease fees), which doesn't seem justifiable to me...

Not planning to take the place down to the studs, but the remodel will be extensive (moving a wall, adding new rooms, etc).

I share this example not because I want sympathy or criticism, but in hopes that readers here might learn from my mistake as they evaluate their own situation.I have a handful of other rental properties that I've added since 2012, and I consider these to have been moderately successful.

This property has a bigger lot, it's own parking and an entire extra duplex to it.

And, be prepared to pay some extra liens that were not recorded at the time of your purchase (weed liens, etc.).

Some more questions that came up to mind...again, really appreciate any feedback I can get:Would I get taxed extra if I form an LLC vs. self-proprietary?

Read my paper.Also read this post I added to this thread:  https://www.biggerpockets.com/forums/61/topics/619...I have never said I'm just the manager, I'm always the owner, the guy who gets stuff done and its me who fixes stuff, takes your rent, nags you when your rent is late.   

Take the extra 3% for a 13% rate instead of 3 points up front and they pay you back any time less than 12 months...well you didn't really make 3 points, did you?

It was not an easy one, since we are in CA and the property is in OH, but we made it through and are looking to take on our next project.Bought: $79,900Initial budget: $65,000Real budget: $97,000 (mismanaged project by initial contractor (and second contractor))ARV: $219,900Improvements:Brand new siding on the second floor (was not in the initial budget)New roof (was not in the initial budget)Sealed and painted the basement - was quite creepy down there beforeOpened the floor plan from the living to the kitchen by widening an existing walkwayMoved the kitchen from one side of the house to the other to capitalize on the stained glass windowsGutted the upstairs bathroom and added really good looking featuresAdded a half bathroom and laundry room downstairs by the entry to the backyardNew ACNew plumbingNew electricOur contractor performed extremely poorly on this job, and I am happy to share a cautious word with anyone who aims to invest in Cincinnati about the team at Kaiker Development and Creative Customs Carpentry.

The key here is not necessarily the numbers more about the tactic and if it’s LEGAL and POSSIBLE To DO it like this or if any one has tried anything similar to this: Property purchase price: 80,000Estimated Rehab cost : 45,000Property ARV: 175,000Hard money Loan used for : DOWN PAYMENT & FIXED COST.Down Payment: 16,000FIXED COST : 18,000 35,000 ( added an extra grand ) HML 35,000 @ 15% interest with 6 points Total: 46,250LOC used for REHAB : 45,000 @ 3 % interest.Total 47,000HML + LOC = 93,250Remaining Balance On House : 64,000 @jasonDiClementeHML + LOC + RBOH= 157,250House sells for 175,000 SP - HML-LOC-RBOH = 17,750 profit - tax about 11,000 grand ... not really a big number but like I said it’s all hypothetical.