I offer a guarantee: if the client decides to sell the home down the road, I pay the referring agent a referral fee.They get paid, they know their client is going to a professional, and they know they'll get paid again if the client decides to sell.

Not to beat it to death as I posted here that I had lost $2k on a Groundfloor deal but, GF advised me that they do not have the borrower personally guarantee the note.

Using their title will save on closing cost, guaranteed clear title etc.

A better method than using percentages in my opinion would be to total up everything you think the property will need to have replaced during your hold period for example 1 roof, 2 water heaters, 2 floors, 2 furnaces etc., 1 driveway, 1 porch, 20 windows... whatever Capex you anticipate doing while you own it, and total that up then divide the number by the number of months you plan to hold and use that as your Capex allocation instead of a percentage of rent.

- Even a commercial loan will require a personal guarantee, so they will look to your financials as well.Thanks,Tom

One of the biggest misconceptions is that S8 rent payment is guaranteed.

Students move out every year so you are guaranteed 30days of vacancy and if you have property management thats another half months rent for placing tenants so I'd go family all the way but students you probably can kick up the rent if its a prime location because you are charging by the room.

All you have is the promise to have clear title at the end of the period.

This means you can't reject Section 8, for example.One thing you can guarantee: the larger cities will always have a more liberal worldview and things will always change in the favor of the bad people.

Pros: "guaranteed' rent though this is subject to government funding (currently funded through HUD) but we did receive payments still during gov't shut downdeposited to bank accountstenants are generally better than cash tenants because their payouts demand it.See my con but because the process is difficult for tenants they are generally committed once they find a place and are settled.