You're paying an extra $1000/month over what it would cost you to just rent a place.Now, lets put 10% down, plus closing costs (about 2%) and loan origination fee (1% typically, though could be more for a loan like this.)Total cash invested: $103,200Cash flow: -$2270/monthCash flow: -$27,200/yearSo, you're investing $103,200 and losing $27,200 a year.

Ive Read in several places that if you have your realtor license that you have to pay the 3.5 percent, or whatever your broker's fee is, on persona investment properties, is this true, or does it vary from state to state or company to company?

If the "rent" he's paying you to use it as a model just covers your P&I, you'll still have HOA fees, and maybe other maintenance.

Also you could find someone on this forum that has been in real estate for many years and offer them a finder's fee for hooking you up with a buyer as well if you don't want to create you're own buyer's list. 7.

If you are planning to wholesale the property, you would market to your buyers list or in many other ways, and when you found a buyer for the property, at a price which would include your assignment fee, you would assing the contract between the seller and you, to your end buyer (the assignee).

Dept store cards typically have the highest rates, worst fees, worst penalties and if you can only use them at dept stores they tend to create situations where people buy items (clothes, shoes, electronics) that they cannot afford.

In this crazy market, ** if you have 5 Tenant Buyers psyched and excited about the Rent to Own concept of buying a home today instead of renting, then ** you can go find the houses, buy them with either Sub2, Land Contract, Lease Purchase with sub-lease and sub-option provisions, or Cooperative Assignment (you Lease Option the house, then sell the agreement immediately for a fee).

Subtract off your closing costs (2%, roughly), loan fees, and rehab costs and you have the max you can pay.So, build a little spreadsheet that has rent as the input and calculates max cost, which is the price plus rehab.

Hey Jason, thanks for taking time out of your busy schedule to give me some knowledgeable advice about this topic.all I need now is to know how to keep my attorney fee's down when creating these contracts lol, which I would like for my lawyer to draft so that way i'm well protected at an advantage (my lawyer charges $320 an hour, thats why I'm concerned about this issue).

Jeffrey, Operating expenses include taxes, insurance, management (even if you do it yourself), maintenance, advertising, office supplies, legal fees, evictions, damage done by tenants in excess of the security deposit, entity maintenance, utilities (if only during vacancies), vacancies, capital expenses (not technically an operating expense), etc, etc, etc.