Some providers take the approach that a furnace or water heater with several years of expected life shouldn't be replaced in the rehab, but that the final product should be priced accordingly. 

I am starting out my real estate journey and after reading several books, including David Green's "Long Distance Real Estate Investing (I am also from the Bay Area where real estate prices are crazy!)

@Elizabeth Cardona Have you read David Greene's BRRRR book? 

Are you only interested in Bowling Green market? 

He was great to work with and had an attractive product and clear communication and great assistant that made it all very seamless.

Given your time horizon, your lender have a floating rate product [the HELOC] tied to a fixed rate loan, which is a bad idea, never mind the fact that they could call the HELOC at anytime. 

I am a product manager based in Chicago and currently working toward my first house hack.

If you’re going to spend $40-$45k in down payment, closing costs and a reserve, spend the $1k and meet the team and see the product!

I have mentioned to him about giving him majority ownership in that LLC and then buying it that way then either buy the LLC or the LLC will sell it to him for the original price minus my cut or whatever but I am not positive about how to legally do that or anything.I am really a green horn who had an opportunity to help other people while hopefully earn a bit of money for it.

Originally posted by @Jonathan Greene:@Bruce Woodruff yes!