Plus, I figure it's probably better to have it in writing.

How do you figure out in that situation what you could price a renovated house at when none of the comps can compare?

The CAP rates factor in property management fees and a projected 40% expense figure.

Thanks@Stone Jin I plan to self manage for the first year to learn as much as possible and figure out how to best automate but as I add additional units, I may outsource portions. 

I figure I can do just as good (bad) as the best of them:)  

Repairs, are what depend on being "placed in service".So ultimately, (you assume no liability here for tax advice) best practice is to itemize receipts so that at the end of the year, it's easy to determine what was a repair and what was an improvement.Currently I have a lump sum figure, not itemized.  

If you use an attorney-owned title company, most of them will be able to help you figure it out.

I'm trying to figure out what is the best way to sell it owner financed?

A couple of them even know who the sellers are.However, now I have to figure out how to get the 25-30% down payment together.

You also want to double check the market rents in your area, and figure out what your PITI payments are to make sure this is a good BRRRR candidate.