It should include what needs to be done, when they get paid, what happens if you fire them before finishing, that they will pay taxes, get permits, not charge you for work unless agreed in writing, ect ..

Then again, new investors will be buying cheaper and undercutting current rent prices (or will they) driving down the rent.

.$70K for $950/month rent sounds about right.If you're going to just turn around and resell it in the same condition as you bought it, you have to ask why someone would buy it from you when they could have bought it from the bank cheaper.

So, whether or not you have an LLC is irrelevant for the tax questions.In either case, you'll need a partnership return, then each of the partners will move their parts of the profits or losses to their personal returns.IIRC, CA charges an $800/year franchise fee for LLCs.I'd be DANG SURE I had a detailed, written document describing how the partnership would work before I did any deal with partners.

I.E. the interest gets charged on the remaining balance, not the total balance, but the payments stay the same so more goes to pay off principal?

for carpet, I use a berber carpet, cheaper and last longer, .55 per sq ft.

They are the guys who will charge $50K to put in a new kitchen, and are probably worth every penny.

And, eviction proceedings can sometimes drag out for a few months if the tenant wants to fight it.It can be a waste of advertising dollars, and your time.Not to mention the risk involved of the tenant making something up and filing some sort of charges for some made-up thing.On top of that, do you want to show a perspective tenant the place while a person who is not paying is living there?

Or, do it twice, and hold the third one (be into that one a bit cheaper, relative to rent), and you're in a position to keep going.

We understand that our source of income would be the lease option fee we charge + income from additional rent (as apposed to what we pay on our option).