For instance, a home with an ARV of $100k or less, you need to be at the 65% minus repairs, a home with an exit such as yours of $475k can be as high as 77% IF it is an easy and quick flip, guideline should be set no more than 75%.For homes with longer rehab times and higher ARV's like $750k and up, you need to get the rule back down to the 65% mark again.Point being, the rule needs to adjust according to each property type, time factor, difficulty factor, etc.At 81% of ARV + you added in rpeairs on top of that (if that costs was $25k) then your "all0in cost to exit price was 86.5%Your $42k profit based on an estimated $411k cash investment gives you a cash on cash return of 10.2% (that is only half of the minimum I shoot for).

The company requires a commission of 1 months rent for finding and placing a qualified tenant and then negotiate a management fee of about 8%-10% depending on a few factors.

If you're financially liable for any delays, make the contractor responsible for past deadlines regardless of all factors.

I do not have a construction background and do not have any ideal how mush a certain job (say a kitchen gut) would cost.

To facilitate commerce, certain organizations combined efforts to create a set of laws that would represent "ideal" legislation to govern commercial transactions.

Since your house might be on a busy street, did you factor the 20 to 25% deduction in value, or if you are selling commercial did you factor the potential increase in value?

If the statutes do not address your question, then the case law very well may give you the answer.3) make sure any case law answer to your question applies in your jurisdiction.Note about jurisdiction:Jurisdiction means a certain geographical area (for this conversation anyway - there are times when jurisdiction doesn't refer to geography.)The size of the geographical area depends on a number of factors.

Bill too many factors would weigh into this.You are looking at hard money with very high carrying costs at 60% occupancy as a regular lender won't touch it.Too easy to go from 60% to 40% or lower and the new lender has a fresh foreclosure on their hands.Unless you pay cash you will need a HML or private money and will have to pay low to get it to cash flow until you can refi into a lower debt service once stabilized.Is this a local,regional,or national bank??

The mechanism is tied to a couple key things, the main factor being reserve capital quotients, which is then tied into the market movement of lending as a whole.

General question: What are your thoughts on the ideal distance between where you live and your first investment where you're managing tenants?