Worse...lowering the humidity in the house via dehumidification can draw MORE moisture in from underneath since moisture migrates from high to low. 

@Adam Kerr those costs would be deducted from gross revenue to determine the Net Operating Income (NOI), then you divide by the cap rate to determine the approxiamte value.

I don’t know what to do to get this locked up.......First flip you should be able to get 80% of the acquisition and 100% of the rehab covered in draws. 

Typically closing costs are just an appraisal fee, and if you don't draw on it then there's no monthly payment.If you're certain, go do a cash out refinance.

If something needs to be replaced/repaired right away, get contractor estimates, add 10% for the unknowns and have that money available upon closing on the property.For future CapEx, calculate useful life of each major component, get replacement estimate, divide that by the number of years of the useful life and set aside each year.

Essentially he just wants to be passive.So is the proper route to create an LLC between him and I as partners then have a lawyer draw up a contract outlining the percentage of ownership I get by doing all of the work?

You can also use a closed end 2nd mortgage as well, but most borrowers want the advantage of having a line of credit as the 2nd.So again, here is the structure:1st Mortgage for 80% with no MI2nd Mortgage or Heloc up to 90%Your 10% down payment to make 100%This structure, allows you to avoid MI, get the best rates and have a line of credit that can be used in the future to draw on if and when needed. 

There is no other business other than real estate that has made so many millionaires, even without trying and even investing blindly with no prior experience and not much more education than being able to draw the image of a fish to sign their name.What I am seeing is, "some people who accidentally made a little money in the real estate business think they are pretty smart and a high percent of the gurus selling their services did only one or two small deals and the results may have only been pure luck.

We also make holes in the walls and install bathroom fans high near the ceiling to draw the heat to the outside.

I understand that you divide your net profit for the year into the total amount invested.