I would have definitely asked if he would carry the note for you.You would have minimal risk and be able to put another tenant or buyer in the property for an assignment fee at the minimum.

They're in buss to make money from you so your job is to minimize it.

Put in trash about 55% and put in water 60 to 65%.Yes when you self manage you can say 35% total and suck out cash flow and do minimal maintenance.

If you have someone putting 20% down with a slightly lower offer it will be a lot easier for them to make up the difference with cash possibly then someone that is doing minimal downpayment financing.

By converting his home to a rental, he was able to utilize his knowledge about what kind of repairs could be expected in the future to determine an adequate repair/maintenance fund while also minimizing his down payment needed.If you live in a property already and simply want to acquire a rental property, then Jeremiah is absolutely correct.

For rental purpose you need to have an HO6 policy, which should cost you less than $300 with minimal liability and then you link it to you umbrella policy for a small fee.

I have the operating report for the previous 3 years and the numbers have not deviated much at all from the numbers stated above.Also, what are your thoughts on negotiating the seller to carry a portion of the loan to minimize out of pocket expense as far as a down payment?

I should look into getting an external property manager for a minimal fee even though I do most of the work.Being beneficiaries of IRA, we cannot possibly 100% contract things out.

I am just trying to minimize their ability to be wasteful.

Even if the expenses you list are correct (and I would be a little skeptical about the minimal cost for maintenance), I believe there are a number of costs you may have overlooked:Property insuranceLeasing costs (advertising and/or commissions)Grounds maintenance (lawn, snow removal?)