No sales contract has officially been signed yet, we are still agreeing to the terms.

This is my official transition from studying-and-learning to actively-searching-for-my-first-deal-with-the-means-to-close-it! 

Since he doesn't officially have a CO to live in his apartment though, he tells the friend that they have to say they all live in the house together as roommates.The "friend" turns out to be a horrible renter, drinking and being loud and disruptive at all hours.

From 1st missed payment to NoD may be +60-90 days of "late notices" before the official timer starts. 

You cant officially get a commission for finding him these properties because you arent licensed, but perhaps be a birddog and get a referral fee instead?

Hi, my name is David and I'm posting here to proclaim my seriousness in officially joining the real estate world!

@Greg Harris Here is the breakdown they quoted me:Purchase Price:$699,000 Number of Units:2 units Property Taxes:$8,388 Insurance:$806.50 Maintenance/Repairs:$1080 Trash/Pest/Garden:$840 Gross Operating Income:$52,800 Net Operating Income:$41,685.50 CAP Rate:6%There isn't rent quoted on the MLS, but doing a quick Craigslist search indicates I can get the following:For the 3 bedroom 2 bath somewhere between $2,100 and $2,800For the 1 bedroom 1 bath somewhere between $1,500 and $1,600The the following cap rate calculation I use a gross monthly rent of 4k.Cost = 699kRent = 4kTaxes = $675 - this is based on a quick google search for prop taxes in LA, quoted at 1.16%Insurance = $150/month (total estimate, I have not received an official bid)Vacancy = $280 (based on 7% of rent)Repairs = $200 (based on 5% of rent, because this was recently rehabbed)Expenses totaled together (without mortgage) = $1,305$15,660/$699,000 = 2.24% cap rateMy plan would be to live in the smaller unit and rent out the larger one.

You announced the raise to him through an official letter, not belly-to-belly first and you didn't justify why he's getting a bigger increase than most. 

I'd talk to them before making everything official.

Yeah, thanks for that. apropos of nothing Steve, other than you may find this interest based on your love of learning to do things yourself, you don't need an "official" QI, from my understanding anyone that isn't an excluded person can serve as a QI as long as they submit the right paperwork to the IRS and withholding agent.