I had the opportunity to buy a flip at 400k, the exterior repair cost came in at $50k and the interior was so bad no one would give me a quote. 

.- Every rental brings deductions: mortgage interest, property taxes, insurance, repairs, travel, and most importantly depreciation, a non-cash expense that shelters part of your rental income from tax each year.- Because you’re 26, you have decades of depreciation ahead.

This is what YOUR insurance is for, so that you don't have to pay out of pocket, now whether you have insurance or what type and if it covers this situation that is completely on you. 3) Another Problem Tenant: "Once repairs were completed, Evernest vetted and placed a new tenant, who refused to pay rent and caused an additional $5,000 in damages."

Holding costs, inspections, and delays add up quick, so being conservative with your ARV and repair numbers is key.

What’s your process for estimating ARV (After Repair Value) and repair costs?

The one thing that I went to because the more time you have getting another property, doing repair requests and all the other stuff that comes with land lording I gave it to a book keeper.

They also went above and beyond by coordinating directly with the builder to ensure that several necessary repairs were completed before closing.

With single-family homes, the issues are different, you carry the full burden of maintenance, so the physical condition of the house, along with any municipal violations, becomes a much bigger factor.In the end, for me it always comes down to three essential considerations before bidding: understanding the market conditions surrounding the property, knowing which liens or debts you would inherit, and being clear about the physical condition of the property and the repair costs you might be facing.

The home will definitely need some repairs (carpet for sure, paint and patching, and a handful of other stuff).

So, give them money to move.Bought for $157,100.38 ****** ARV$245,000.005 bed 3 bath – Phoenix AZThese are the numbers from the HUD statementBought for $157,100.38 ****ARV$245,000.00Existing Loan Amt Payoff $118,145.37*Subject To$118,145.37****Closing Costs From HUDTitle$1,045.00Escrow$1,400.00County Taxes$538.38Recording Fee$120.00Cash to seller$10,000.00Misc other charges$525.00Total Amount Due $$13,628.38***Arrears To Bring Account DueTotal Number of Missed Payments:11Total Payment Amount$10,095.47Unpaid Late Charges$146.84Additional Amounts:Foreclosure Fee/Cost$354.19Unpaid Advance Bal$1,101.75Total Amount Due $$11,698.25***FHA Loan Mod 2nd$11,582.44***My Out of Pocket$36,909.07***Total Cost Basis of Purchase$155,054.44ARV (After Repair Value)$245,000.00Repairs Post Purchase$ 5,000.00 +/-Unrealized Profit$84,945.56***Equity (ARV minus Subject To payoff)$126,854.63***I strongly recommend having 3 months reserves as follows:Monthly Mortgage$917.77(Taxes included)Electric Monthly$362.21Water & Sewer Monthly$102.80HOA – None$0Reserves3 months mortgage payments @ $917.77 per month = $2,753.313 months Electric payments @ $362.21 per month = $1,086.633 months Water payments @ $102.80 per month = $ 308.40 Minimum Reserves Total $4,148.34Then I turned around and sold it to someone in CA on a Lease Option for $265,000 getting $20,000 down on a nonrefundable Option fee, and rent of $1,900 a month.