They are full service with reasonable rates.

@Breanna Green I helped another client that had land and thought maybe of building.

In this example, I didn’t include any CapEx costs and the loan is 75% of the value.LTCWith a LTC structure, the lender is willing to lend funds as a percentage of the underlying asset’s purchase price plus renovation/repair costs (project cost).LTC financing is generally viewed as favorable for the borrower albeit, riskier, due to higher leverage, less debt service coverage, and renovation risk in the form of underbudgeting.LTC = Loan Amount / Project CostsMost often, lenders are willing to offer LTC terms structured as a bridge loans.

These numbers should be determined using a combination of the historical financial data available, feedback from your property management company, your business plan, and the property characteristics.Generally, you can expect per unit numbers like this:Repairs & Maintenance: $200 – $500 per unitAdministrative: $150 – $350 per unitUnit Turnover: $200 – $300 per unitContract Services: $200 – $500 per unitUtilities: $800 – $1,200 per unitAdvertising $100 – $300 per unitPayroll $1,000 – $1,600 per unit (very market specific)Insurance: (very market specific)RE Taxes: (very county specific)Again, these are very general per unit numbers but they should help provide you with guidance. 

Under IRS Publication 527, you can depreciate this 10% portion of your home over 27.5 years using the straight-line method.I am a Certified Public Accountant and I offer bookkeeping and tax services related to real estate.

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $100,000

Cash invested: $60,000

I partnered with a BP member on this deal, Mike. I was able to negotiate the purcha...

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $100,000

Cash invested: $60,000

I partnered with a BP member on this deal, Mike. I was able to negotiate the purcha...

Some argue with that since one can claim the lead isn't a client requiring fiduciary...

In the Tampa area it is still possible to achieve a 5-10% CoC return (sometimes higher) on a property here if you are hiring full service management. 

@Chris Seveney Are you guys servicing the loans yourself, or do you have a vendor that supports this process?