My ad makes it clear that I offer the unit to pre-qualified applicants based on the time-stamp on the application.

Also, both contractors probably have mechanics lien rights that could encumber your property for the amount of their claim.You should review the applicable state mechanics lien law.This is not legal advice as I am not a licensed attorney, consult independent local counsel.

For NC reference, NCGS Chapter 45 contains the statutory framework for deed of trust, with Articles 7 and 9 dealing with future advances and equity lines of credit, respectively, and power of sale, generally applicable to all the security instruments handled in a trustee sale.

I do have them fill out the application, so I have it on file, for future reference if needed.  

The Builders have already spoken as new home starts and applications for new construction slowed this quarter.

Most on this website will tell you the 2% rule is applicable in war zones with high turn over, cap ex  or high turn over expenses.

I wanted someone to review my personalized calculator and suggest any edits.Monthly rent (and other additional perks)(less) vacancy lossGross monthly operating income (A)(less) Monthly operating expenses (B)Property managementProperty taxesUtilitiesHOA (if applicable)Repairs and maintenanceNet Operating Income C = A-BNet Annual Operating Income D = C * 12Cap rate = Net Annual Operating Income / Purchase priceDown Payment = (This is my own investment)Monthly Mortgage (Principal)Monthly Mortgage (Interest) Cash Flow Annual = (Gross Monthly operating income – Monthly Operating expenses – Monthly Mortgage (Principal + Interest) ) * 12Cash on Cash Return = Cash flow Annual / Down paymentTaxable deductionFrom Interest deductionFrom operating expense deductionFrom ownership expense deduction(Depeciation) = Purchase price / 27.5Saved in Taxes = Taxable deduction * (your income tax bracket)Increased Equity = Annual Monthly mortgage (Principal component)Total returns = Annual Cash flow + Saved in Taxes + Increased EquityROI = Total / Returns Down paymentWhat typical ROI is reasonable to expect from 2-4 unit multifamily rental unit?

I make the tenants tell me as much as possible about the problem, and include photos when applicable.

If anything this community suffers from too literal application of "rules of thumb."  

In both instances they do the initial screening on the applicants, and once they find someone who meets the minimum qualifications I still get the final say.