Rules from county to county and state to state dictate what minimal amount of an opening bid can be set by the mortgagee in FCL auction.

Then you two should split what's left 50/50.OTOH, him changing the rules when the deal is underway is a very, very bad sign.

It will include who pays what, including real estate commissions, in accordance to state law.These critical agreements should be constructed by a real estate attorney in the state where the property is located.State laws rule and vary.

He spent probably in excess of $25,000 in legal fees to perfect Texas lease options, especially since Austin changed the rules on lease options.You see, the crooks in REI in TX were bad guys, selling crap houses to Hispanics, selling on terms like rent to own and CFDs, the crooks not recording ANYTHING, foreclosing and evicting like the old West, and in 2005 Austin let loose on the public "executory contract" TX laws.Bottom line, "scare the heck out of REIs selling houses on terms.

I read about the 2% rule, is this realistic?

Laws, contracts, and financing rules will all be different.

Income per year - $8,40050% rule - $4200Leaves $4200 a year for a cap rate of 11.35%Looking for opinions on if this sounds good.

Here's a link describing the rule: http://themortgagereports.com/6336/delayed-financing-rule-cash-out

I have NO IDEA how the rules work in your area, but in most places if you get a call from code enforcement the first time it's usually a warning...and even if you don't get a call, we recommend putting them out on Friday and picking them back up Sunday evening.

State law for the state in which the property is located rules.