This can happen as I alsways ask what other work they have going and if they are going to order a truck load of sheet rock, then we talk.Advances on the bid job are to a percentage of the total work accomplished and change orders are a flat hourly rate.

I would not expect it to cashflow like my rentals; however, I was looking to see if it would help cover a large percentage of the costs.

Even as a percentage of just rent, your operating expense ratio is only about 35%, which is still low.If you assume OE of about 50% your rental income, then it is still a good deal.

IRS (the tax form and I have read the instructions also) is treating the 840-179 as total receipts collected in the year of sale and applying the gross profit percentage to that - yielding a taxable gain of $X (big number!).

All of them will be on the hook for the full amount due as well; it does not get divided up in percentages based on who can afford what.Maybe you need to examine a different approach, say posting other property as additional collateral, or assigning rents from other income producing property (if free and clear).

or a percentage?

The percentage works out to about 3.35% in the case of this property, which is not very uncommon in this economy.50% rule says that the monthly expenses (excluding P&I) will average 50% of the gross monthly rent.

HUD does have some magic percentage, but I believe its based on the listing price.

Ads in papers are too expensive and low percentage of action comes from these.

I was on the Old School Title call and the percentage was 75 / 25% split.