That way I or my business partner in the LLC can handle the property management for all the properties.By breaking them up, we could always do the property management for him for a fee, but then that would entail being a PM for someone else and taking on whatever additional liability or costs that entails in Maryland.It’s definitely sounds cleaner to break them up.

Cash-on-cash is relative and it is only one metric...and it really only works for year one to put properties on a level playing field so we can compare where to put our limited dollars.

Example:$100,000 ARV x 70% = $70,000 All-in- $20,000 Rehab - $5,000 Closing (Acquisition Closing, HML Points, Refinance Fees)- $5,000 Holding = $40,000 MAO Holding costs include (but not limited to) loan payments, insurance, taxes, utilities, HOA fees, etc., that occurs during the Rehab period and up until the property is fully rented.I get a lot of “NO’s”.  

When someone gets food poisoning who has liability?

So any money I put into renovation on top of the purchase price--even if the total still came in well under that 70% mark--would be stuck in the property, which would still limit my purchasing ability to how quickly I could save money.At this point, I'm back at square one.

It limits the chances of being taxed or penalized. 

You'll record the interest as an expense and the principal as a liability (see a CPA or bookkeeper for more details).If you are concerned about making interest payments during the flip, you can modify the terms of the loan with your father-in-law to accommodate.

You can put whatever limitations you want on the guest that comply with your local laws, but I wouldn't see any major issues, if the tenant thought he was a bad actor they 1. wouldn't want him in their house. and 2. wouldn't have asked you expecting that you would say no.

(trying to maximize my limited advertising dollars)I haven't placed any of the bandit signs yet but plan to this weekend.

A refinance into a higher LTV non-recourse loan could free up some additional capital, but how much the lender would go could be limited on a recently rehabbed property.