Out of that loan when we closed everyone got paid up front.. the teams on the ground got their profit the marketing company got their spiff / commish and we now had a loan in place.. once rehab was done the take out lender sent in the same appraiser who did the apprasial for the PRe qual.. and they did what was called a 442.. which verified all the work was done and then the loan would close shortly there after.In those days we could all make money at 65% of ARV.. that was enough to pay profits to the operator on the ground and pay the marketing company their fee's.. when the take out loan closed we got our return on our HML .. and the investor ended up with the home and a new loan.. now generally they did a 75% ARV loan so they actually walked out of the transaction with between 5 and 10k of refi proceeds. many times we would do 4 at once for the buyer.. all they need was the fico score.. and 4k up front.. they would get 20 to 40k back at closing tax differed and the property should generate 100.00 to 150.00 per month positive cash flow all expenses accounted for.

I would not make legal decisions on the advice of some random internet guy.

Tenants need to be informed about revenue generating opportunities and being reminded to cancel their cell phones, internet, sell their new car and buy something they can afford and that ramen noodles is the cheapest meal out there. 

I keep hearing that this is one great way to find motivated sellers but I don't see how to generate this list at all.  

Don't quote me on that though - I've been absorbing a lot of random news snippets these past couple weeks!

My main goal is to develop a portfolio of rentals to generate passive income. 

My main goal is to develop a portfolio of rentals to generate passive income.

I am not saying that the agent is lying about the property generating 33k a year but I would definitely be skeptical and double check the market rents. 

An imperative number is the gross income the property is currently generating.

I'm generating $11,400 in gross income and my total expenses are at $4,400 for the year after taxes, insurance, mortgage.