In his contract to sell, he stipulates that his company will be the builder on a cost plus building fee.

I have been studying any books i can get my hands on. listening to podcasts for the previous 10 months. attending local meetups, meat some very knowledgeable individuals. i have been bit by the real estate bug i cant stop talking, asking, listening, all things real estate. have a family member who asked me if i wanted to manage a rental property for them to help me and them. they have been using a property management company, but they want to help me get my feet wet.

They can still cash flow if you are willing to self manage, but if you go the traditional route of having a property management company, you'll likely be negative every month.  

As an RPM I require that my Tenants and Owners list my PM company as an "Additional Insured".

Some smaller landlords are using home warranty companies.

So far so good.I am eager to get my rental company going and acquiring more properties.

The going rate here is more or less 18% management fee but they keep your reviews meaning if you change management companies, sell the property and the new owners are not willing to use the same management company etc. you lose the reviews so when it is marketed you are starting from scratch.  

All of these things are great for you as a customer, you are protected against all kinds of bad things happening on the jobsite.Plus your finished project will now be legal in the eyes of the City and your Insurance Company.

If you get audited good luckNot a cpa or tax professional just telling you what has been relayed to me by several CPA’s Maybe i will lease it under my company name.

Also, an insurance company will help defend any suits brought against you where you need to foot the bill for an attorney if using an LLC.There are other reasons to go one way or the other depending on what you are trying to achieve.