But your experience is quite common among contractors who do not know the FHA 203k guidelines.

Is it common practice for the contractor you hire to charge a “PM fee”?

Is it common practice for the contractor you hire to charge a “PM fee”?

Is it common practice for the contractor you hire to charge a “PM fee”?

An ordinary expense is one that is common and accepted in your trade or business.

If I were a betting man, I’d guess that opex would be closer to 50% given a lot of expenses are fixed (lock change, carpet cleaning, owner paid utilities, appliance repair, just to name a few) regardless of a unit renting for $500/month or $800/month.

So, I understand wanting to utilize the VA loan opportunity.

I have a couple of questions about one of the strategies commonly discussed on the show and in the forums.

Usually you need to keep the utilities on and in your name through the last day of the month. 

Evidently the buyer's lender required him to pay off his credit card balance in order to be approved for the loan, and the buyer refused/wasn't able to.The asking price is $128,000, but I was thinking of utilizing a BP calculator report (shown here) in an offer to show what it takes to achieve my coveted 7% cap rate and 10% COCROI.