Here's a list of repairs and approximate costs:New 100AMP service w/ all new copper wiring throughout: $3,000New roof $45007 new windows: $2500Drwall patching/texturing $3000New doors/trim throughout: $1800Hardwood flooring material (I installed): $600Carpet: $2800Tile: $800Bathrooms: $2500-3,000 a pieceGranite countertops: $1500Paint Material (I painted): $1000Garage Doors: $1200Appliances: $2000And a whole bunch of miscellaneous stuff (it's on a spreadsheet somewhere)=$39,000Purchase price was $54,000 and have a pending offer at $120,000 which was our goal from the start.

How do you determine a fair market value of his home before I meet up with him?

I was very tempted to accept them just because they traveled so much, but there was a fairly wide age gap and I think I wanted them to be more of a good roommate match than they really were.

Brian H, your calcs are pretty good, but I'm fairly sure (I know I will vehemently corrected if wrong ;) ) the TI part of the PITI, would be considered in the 50% guideline, so you would be counting them twice here, also PM is generally costed out at 10% so his expenses would more be...12*1970 = 23640His running expenses without PM would be 3665*40% *12 = 17592 - his tax and insurance already considered in PITItherefore he would be $2748+TI positive for the year.However he may have some deferred maintenance etc if there is a 50 year old water heater sitting in the basement.

Are these folks just a bunch of scammers trying to take advantage of people (my theory) OR is there something I'm missing?

While operating an LLC is fairly simple there are a lot of considerations to make.

In the end, the way to go is whatever the two of you work out as fair, just make sure it is clearly documented in the operating agreement.

I've removed a bunch of posts from this thread.

@Deirdre Brown thank you, now how have your investor clients faired at attempting short sales and mediations?

HUD believes two persons per bedroom is reasonable under the Fair Housing Act.