Another thing; look at slowly adding upgraded amenities to your properties as your capital permits, particularly when changing tenants.

We established a full project timeline and budget, scheduled the contractors, pre-ordered most of the materials, acquired the historic division permit, received renovation permits and have the dumpster in place for demo starting tomorrow.

Management is a good thing to include even if you are doing it yourself - the additional money you earn by managing yourself is more like money you earn by doing a job than income on your investment.15 year scenario:Asking: $60000Down: $15000Financed: $45000 @4.5% over 15 yrsGross Income: $10200 (850/mo)Expenses (50% rule): $5100NOI: $5100Debt Service (PI part of PITI): $4128Cash Flow: $972 (81/mo)Cash-on-cash return: 6.48%30 year scenario:Asking: $60000Down: $15000Financed: $45000 @4.8% over 30 yrsGross Income: $10200 (850/mo)Expenses (50% rule): $5100NOI: $5100Debt Service (PI part of PITI): $2832Cash Flow: $2268 (189/mo)Cash-on-cash return: 15.12%When you add the principle paydown back into equation, the numbers even back up, however the extra money you pay in order to be done in 15 years is still only saving you 4.5% interest - something that money could beat if put towards a second property.

He'd manage the on-site project: managing the rehab, getting materials, getting permits as needed, and so on.

If that number is high enough to justify the work plus extra, that extra is potentially your margin if you were to wholesale to someone else who had the same numbers you did.

I don't like the practice personally, but it does exist.Can't remember if I mentioned this before in this thread, however, if you concentrate on older assets (say 90 or 120 day DOM listings), you can find some extra motivated sellers where bid wars are vacant.

Here are my reasons:http://www.biggerpockets.com/renewsblog/2010/02/24/should-you-get-your-real-estate-license-investors/Btw, while it wasn't my primary motivation to begin with, the best reason I now see for having your license is the ability to control your deals, especially if you'll be selling your properties (in other words, less important for those who are buying and holding).But, access to the MLS and extra profits are two other important reasons...

The work includes a lot of planning (put that chair there, use these types of window coverings here) at no extra charge.As you mentioned, the better this person can work in concert with the listing agent, the better your chances of optimizing your resale in terms of both minimal time and maximum price.

I submit my offers cash with POF (in my bank account) and am permitted under the contract language to get financed without any addendum.

Is it worth the extra money to get set up this way?