Rental properties in this town are overpriced and not much to choose from while home prices are underpriced and plenty of homes on the market.So now I am back to looking at owning, even if for the short term, although transaction costs could push this into an expensive proposition.What percentage factor do you use as a average for transactions costs on both ends of buying and selling a home.Also, if you have any other advice in this situation, my mind is open.

I think it is true that you should have X amount of dollars saved up in case you do get a bad tenant and have to do some repairs - maybe take out more percentage from your cash flow each month for repairs?

The problem with trying to analyze this is your analysis is based on percentages, many of which don't relate to any of the other ones, and are very misleading. 

Cost-wise if you go with a split fee office you typically don't have to pay anything if you're not selling, but you split commissions with the office, usually up to a top amount after which you may get 100% or at least a higher percentage for the rest of the calendar year, then you start over again.

So, they are buying an Option to purchase a percentage of ownership at a later date (25% of the future equity in these deals works out to be a 25 to 30% annual yeild).

After which, they can only raise a specified percentage.

What percentage of the rent would you save to account for vacancy in Eagledale?

A cheap Class C or D property might still require expensive repairs (like replacing the roof or water heater might cost as much as on a B property) so using a percentage of rent for it it might not be wise and reflect reality. 

So from a legal and tax perspective, how does a monthly or annual pay out work?

Funding is almost entirely cash and we’re looking to add a greater percentage of financing.Problem is that traditional mortgage lending is too inefficient.