I also recommend that you do not have phone conversations with the contractor, rather, put everything in writing, but ONLY After you consult with your attorney on a response.Clearly the learning lesson here for you and all reading is to NEVER hire a contractor without a written contract outlining all specs of the job, pricing, payment schedule, late penalties, etc.

Correct w/ no MI, but the rate is higher, so a but if a push - except that the extra rate never rolls off once you hit 78% LTV on the amortization schedule. 

@Polina Goncharova - as an accountant, you should know about Schedule E - look there and make sure you have allocated for all allowed deductible expenses; they're deductible because they will be incurred in the course of doing business as a landlord.

I am scheduled to view the home today after work.  

(I'd be surprised if it all made sense to somebody other than myself lol)Rent Rate$750.00Actual Reh$13,965.72Sell CAP10.50%Private Money10.00%Compound/Simple Int.SimpleGross Assessed Value$57,500.00After Repair Value$60,000.00JHP Money in Deal$0.00Purchase Price$11,037.72Wholesale/Money Fee$4,000.00Rehab Budget$18,000.00Actual Rehab$13,965.72CASH BACK$4,034.28Rent Rate/mo$750.00Gross Scheduled Inc.$9,000.00OPERATING EXPENSESMonthly%YearlyVacancy Rate8.00%$60.008%$720.00Taxes$99.5813%$1,195.00Insurance$40.005%$480.00Maintenance7.00%$52.507%$630.00Management10.00%$75.0010%$900.00Electric$0.000%$0.00Gas$0.000%$0.00Water$0.000%$0.00Sewer$0.000%$0.00Garbage$0.000%$0.00JHP HOLDING COSTSMonthly%YearlyPrivate Money$275.3137%$3,303.77SWBC Insurance$16.952%$203.40Alarm$25.003%$300.00Electric$23.453%$281.40Water$30.004%$360.00Sewer$4.921%$59.00Garbage$0.000%$0.00HOLDING COSTS/moRehab Vacancy Time3Total Expenses80%$602.71VACANCY COST$1,808.14NOI w/ Tenant$147.29REI Buyer EXP/mo44%$327.08REI Buyer NOI/mo$422.92REI Buyer CAP Offer %10.50%REI CAP Sell $$48,333.33REI Equity % Sell $15%$51,000.00Total Expenses$30,811.58Marketing to Sell Prop$500.00Closing Costs$850.00CASHOUT REFI CAP %13.38%CASHOUT REFI $$11,188TURNKEY NET PROFIT$16,172EQUITY % NET PROFIT$18,838RETAIL NET PROFIT$29,188

I haven't done this in a while, but on the Schedule A, I think, there is a line for "interest paid on a mortgage" for which you have a statement from the bank stating how much you paid (don't know the form numbers, I'm NOT an accountant, although I played one on tv).

I've done this before when I was out of the country and had a closing scheduled.

My goal is to capitalize on the market in Austin Texas by reducing the risk and creating an aggressive schedule.

Soon after that there will be a maintenance scheduling and tracking piece (allowing you to schedule anything (also some tasks that remind you to switch out toilet wax rings every so often, clean dryer from lint (fire hazard after a few years), etc.).Thanks for your feedback!

Local eviction laws can play a significant role in ensuring the rent is paid on schedule.• The typical hold time for real estate is 10+ years.