Hi Everyone,I was helping a client find a rental in the metro west area outside Boston and I noticed real estate agents who owned and managed the units they are listing were charging a brokerage fee to the potential tenant (my client) to move in to their home.I thought this was weird because why would an agent want to collect a fee from their potential tenant on top of first, last & security.

@Marc Alexander rates are low so that will help... you are looking at the right numbers as well (I calculate mine with just debt, tax and insurance and only invest at a 33% return... knowing that my goal does not take into account vacancy or repairs so I come in below the 33% but always above the 20% mark you want to hit)Look for and buy fir cash flow... stay away from real crappy areas (like you can get great ROI in south side of chicago but you have to carry a gun to collect rents) and make sure tenants are “good” people....

Just wondering what people are using for a property management tool that collects rent, has a background check, and any other basic needs?

I would not pay more than 3-4 months worth of the management fees collected for just the contracts. 

Rent will be collected during that time, depreciation will be taken, and where they are being built they will also appreciate in value over that time period.

Not just on the maintenance front but on the rent collection front as well. 

But ads a few $1k for water proofing paint, to much much more

A few questions here:Do you setup completely different bank accounts for collecting rents and making payments?

The president also claimed that maybe (yes, he said maybe without any concrete proof because he said he said how my tenant drives and she always had to go back and forth a few times to get into garage) it was my tenant who hit the garage door and damaged it.

On the day of closing the title company will handle all of the paperwork and you will collect a check for the difference in prices between the two contracts.