As to the seller getting any funds, you do realize that is totally speculation on your part?

And I have another one in the works where my total rehab costs will be about $500.

All in all it cost about 30k in materials and the labor for the upgrades (sheetrock, carpet, lights, bathroom, kitchen, windows, and appliances) and the person that we are working with did it for a very reasonable cost about 8k total due to the fact that he got a commission on the front end and also on the sale end.Then we listed the house in August and it sat then sat some more.

@Drew MacDermott - There are a million different ways to structure the beneficial ownership, but I can start with an example of a deal I'm doing right now with a total of 3 partners.

My total expense including everything (mortgage, tax, maintenance,property mgmt company) is 1500.

I have 'partnered' with some friends in the past, but their only contribution were loans, they had no interest in the real estate.I currently own three buildings (five total units).

The 1% rule (or 2% rule) is a calculation of the amount of monthly rent as a percentage of the total purchase price.

And, I think, it totally makes sense.

At this point I’m totally hooked, and am looking to start investing.My goal is to replace my income with rental cash-flow in the next 5-7 years.

On a more positive note, we stuck a sign in the yard and got tenants who qualified and signed a lease - for $20 more than I had originally planned ($515 total for the basement apartment to a nice young couple.