This is consistant with Fannie Mae, Freddie Mac, VA, FHA, USDA and any insured lender for a portfolio loan.One guy uses a credit as a seller concession which works for FHA and his angle of business, but it can and does cause lending problems in other types of financing as seller concessions may simply be deducted from the sale price to arrive at the LTV.

Can somesome recommend an investor friendly insurance company in MD?

When you have a lawyer review the document you are buying an option to claim against the lawyer's insurance if they offer you defective advice.John Corey

Good contractors carry workers comp and insurance.

The credit partner needs some verifiable liquid or semi-liquid assets for reserves.Although these are not needed for the deal to close, they are reviewed for verification use only (bank deposits, stocks, bonds, mutual funds, retirement accounts, cash value of insurance or other).The credit partners, if classified as “seasoned investors” can often participate in up to ten or more transactions per year.

What do the (very) current taxes and insurance run and at what per cent, and are tenants month to month?

Asking 350k 12 unitsScheduled Gross Income: $72,000Vacancy (5%):$3600Effective Gross Income: $68400 Maintenance: $7200 Taxes: $12,600 Insurance: $1,200 Other Expenses: $10,600 Total Expenses: $35,200Net Operating Income: $36,800/12=3066.66350k@8% for 20 years=$2,927.54balance=139.12/12=11.59 per unit not stellar by any means, but in the black.

Operating expenses include taxes, insurance, management, maintenance, vacancy expenses, advertising, utilities paid by the owner (at least during vacancies, rehab, etc), evictions, court costs, entity maintenance, legal fees, common area upkeep, lawn care, snow removal, office supplies, damage done by the tenants (in excess of the deposit), lawsuits, capital expenses (although not technically an operating expense), etc, etc, etc.

and i don't regret it at all. sure it's nice to have made a great profit on my first transaction but i viewed the situation as:1) i can continue to rent...2) ...or own a property paying the same amount of rent and expenses while gaining experience.in both instances my cash flow (i'm going to include the income from my job) would have stayed relatively the same---granted i pay about 200 more due to taxes and insurance. but 200 extra a month was not as important to me as it might be for some one else who has a tighter budget. but since i made the leap definitely feel more confident navigating the entire process over again and also learned how to do some rehabbing on my own (tiling, staining, flooring, light plumbing..etc...)I also now have realistic timelines as to when certain jobs can be completed----at one time i thought I could gut and fix my kitchen and two bathrooms by myself in under 2 weeks only working weekends.

Gathering and verifying all the needed documentation, coordinating additions to insurance, changeovers of utilities or service contracts,etc. and even getting all of the owner's basic info is sometimes a real pain!