But now we’re facing major structural defects, and after contacting the city, I found that the flipper made significant changes without permits.

@Jenni LeeCongrats again on taking steps toward your first rental property — that’s a major milestone!

The area the OP is referring to is actually one of the worst areas to buy for tax purposes because the majority of the home value is in the land, which can't be depreciated.That's not to say it isn't helpful in making their decision, but if taxes were priority #1 they would be buying in an area where the house vs. land value is more slanted to the home, the opposite of 30A.The most likely thing is that they are very wealthy people buying them as true vacation homes, and the rents merely subsidize the mortgage when they're not using the home themselves.

So, if you fail to apply the correct assumptions to a property, your expectations won’t be met and it may even be a financial disaster.We use the following to rank Property Classes, in order of importance:Property Tenant Pool: closely linked to location, but not always.Property Location: closely linked to tenant pool, but not always.Property Condition & Amenities: it’s important to, “Maintain to the Neighborhood.”Key metrics for each Property Class:Class A Properties:Tenant Pool: Majority of FICO scores 680+, no convictions/evictions in last 7 years.

Many experienced investors recommend budgeting an additional 10% to 20% for unexpected costs and getting multiple quotes for each major part of the job to keep contractors honest and competitive.Note: This information is for educational and informational purposes only and does not constitute legal, tax, financial, or investment advice.

There had to be a major aiport that we could fly in and out of without any transfers3.

They had a lot of major things replaced in the last 2 years via a city program for senior citizens (roof, plumbing and sewer line, electrical panel but not a full rewire, windows, water heater) but the house needs a lot of cosmetic work and there's clearly water damage on the ceilings from previous roof leaks so likely some mold issues as well.The daughter mentioned comps in the area selling for 220k-230k but I think that's pretty high given the condition and location (19133 vs 19122 which is closer to the park).

but homeownership has, for a long time, been much more about the monthly payment and not the purchase price.You take someone my generation (gen-x) and older, and the vast majority of the time when we ask "how much is it" we are asking and will press for the whole $ amount. 

We currently have 3 properties (8 units) that have all been value add, and I did the majority of the work on them.

We are still getting the majority of the bookings 6-12 months in advance.