This includes carrying costs during the rehab stage: insurance, property taxes, lawn care, utilities, etc.)2) A new HVAC system?

They left the well working , probably to water the lawn .  

Here's an example of a Duplex I'm looking to close on next week and what I can expect to put aside in expenses and also take in:2bd/1ba & 1bd/ba Duplex - Purchase Price $41,500Income 1 $600, Income 2 $475,  Vacancy -$90, TOTAL INCOME = $985Mortgage $220, Property Taxes $66, Management (6%) $65, Insurance $55, Water $60 TOTAL CORE EXPENSES = $466/moSnow Plow $21 ($250/yr), Lawn Care $0, Turn Over Cleaning $25 ($300/yr), Visits/Phone Calls $60/mo TOTAL MAINTENANCE = $106/moOvens $400 x 2 / 8 yrs = $100/yr, Fridge $500 x 2 / 8 yrs = $125/yr, Dishwashers $0, A/C $0, Washer/Dryer $0, Water Heater $400 x 2 / 10 yrs = $80/yr, Furnace x 2 / 15 yrs = $267/yr, Roof $8,000 x 1  / 20 yrs = $400/yr, Carpet $2 x 600sf / 6 yrs = $200/yr, Yearly Total = $1,172/yr TOTAL REPLACEMENT EXPENSES = $98/moTotal Avg Monthly Income = $985, Total Ave Monthly Expense = $670, Cash Flow = $315,  Down Payment = $8,300, ROI = 45%!

Either way you both avoid taxes - pretty good deal.Buying the property for an artificially low amount to avoid taxes would be considered tax evasion and is illegal.

Is your snow/lawn contractor fair?

Lawn care/snow removal, legal, accounting, advertising, pest management, etc.As I said it still looks like a good deal. 

keywords: 60617 / 60637 / South Chicago / Loop / Bronzeville, Deering, Greater Grand Crossing / Hyde Park / Wood Lawn / Cook County / Chicago

I am co-founder of a startup developing Artificial intelligence based monitoring tech to constantly watch out for any issues either with tenants or maintenance issues.  

See the 3 things after the financialsPurchase price: $390,000I can get financing at 25% down, 5.5% amortized 25 yearsPer seller:90% occupancy or higher since they owned in 20028 - 1 bed/1 bath at $550 per month6 - 2 bed/1 bath at $650 per month*One of the 1 bed/1 bath has an onsite manager/handyman living for free so there is no property mgmt costs in the expenses*Owner pays water and trash2017: Total Operating Income: $79,989.50Expenses:- Lawn Maintenance: $1,800- Water: $6,816- Trash Collection: $1,740- Pest Control: $820- Supplies: $4,280- Repairs: $9,852- Insurance: $4,153- Property Taxes: $10,515Total Expenses: $39,976.82NOI: $40,012.682016:Total Operating Income: $83,154Expenses:- Lawn Maintenance: $1,800- Water: $5,820- Trash Collection: $1,680- Pest Control: $604- Supplies: $6,639- Repairs: $9,910- Insurance: $4,153- Property Taxes: $10,521Total Expenses: $41,127NOI: $42,027So if I’m all in at $115k (down payment + closing costs), assuming 40k NOI, i’m looking at 16.4% cash on cash with one unit vacant at current rents (without anything set aside for capex however)WHAT WORRIES ME:1) No washer/dryer connections AND no laundry facility on site (would have to build a new building and run new plumbing to add one).

The Tenant must keep the lawn maintained; must remove leaves and debris and keep window wells and drainage areas free of leaves and debris.