You're on the right course.As far as extra liability assumed when the house is paid off, I'm stumped as well.

In fact, for the level of house I'm assuming you're doing (relatively low end), I'd think those prices are on the high side.Cabinet Hardware, Electrical Covers, Vent Screens, etc = $750I generally budget $1000 per project for outlets, switches, plates, registers, mini-blinds and other random stuff.

Regarding the quote above, and realizing that originators and agents are two completely different animals, I had a thought.We are negotiating through our agents, not with each other, so this should also offer a bit of protection I assume.

Zachary Sexton Assuming you're talking about the Denver ones?

I assume the appraisal is only based on the "official" home.I would be at least moderately concerned that you have space being leased out for habitation purposes that is not on the city and tax assesssor's radar.

You could assume the existing lease if you take title or make a new one if you have a master lease arrangement, you can't lease a property that has already been let to another.

If I assume 8% vacancy and $50 montly cost for fixing poential problems with the property, my spreadsheet shows about $110 month cash flow, which is about 7.6% of return.

Lenders will assume a management expense.As to negotiations, you can certaintly mention mgt as no one works for free.

I am assuming the owner will not comprehend any of this being in 80s, and never having paid any taxes on it (40 years!).

Assuming the loan documents prevent transferring title to my LLC, what should I do?