My most recent job is reviewing Government FHA loans before they are sent to HUD for mortgage insurance.

Usually unpaid taxes & insurance take away any overage there may have been.Hope it helps.www.dfwmentor.com

Lastly, always make sure your contracts with the seller and your cash buyer are "Net to Seller" which means the buyer pays all closing costs, check the box on the contract that says "buyer pays title insurance", check the box or make a note if no box "buyer may assign contract."3.

Sold the $50K for $73K FIRST DAY IN THE PAPER.My ad says "3/2 (or 2/2) owner will finance with $2000 down payment".Buyer has to bring the following to closingBalance of his $2K (I usually get $1K at contract signing)One year of PAID homeowner's insuranceThree months of taxes and insurance payment that I WILL ESCROW$350 for DOCUMENT PREPARATION.

Not only do we have to make sure they have a license and insurance but that we do a contractand dont let the money get behind you.

I am not sure if the paying for my rentals with cash is agreed on by all, but if, all I owe on them is taxes and insurance and hard times come at least the banks won't be able to take them away!

I know about having $1 million is general liability insurance.

I've heard that lenders want to see that 75% of the rents can cover the mortgage pmt, taxes, and insurance.

Or is it an "alligator", eating taxes and insurance while not providing any return?

Executed Broker Loan Fee Agreement, if applicableAdditional items required to approve, document and fund the loan1.Appraisal Report by an approved appraiser2.Formation documents of the Borrowing Entity (LP1) and Tax I.D. number3.History of property ownership if purchased from a related party4.Closing Statement for the property (or proforma closing statement if under contract)5.Joint Venture agreement (if any)6.Preliminary Title Report with underlying documents7.Geotechnical Soils Report8.Phase 1 Environmental Site Assessment 9.Site plan (with units plotted)10.Grading Plan 11.Architectural drawings with specifications12.Architectural agreement (if any)13.Engineering agreement (if any)14.Construction Contract (if any)15.Insurance broker’s name, address, and phone number (builders all-risk, general liability)16.Independent cost review may be required17.Related Debt Certification (Loans To One Borrower)Notice of Right to Receive a Copy of the Appraisal Report Here is the info to help you out.