I love this concept, feels fair to both the tennent and the landlord.

This has both positive and negative tax implications.

I have a cash flow positive property ($400 a month) and a cash flow negative ($250 a month) property.

Try to find a product that has an add value ability from the exterior items, the interior concept including washer and dryer location.

In most other countries rehabbing/remodeling is a foreign concept (no pun indented) ;) so you can get great flip deals in the very best neighborhoods.  5.  

@Dave Jimenez  your wasting your time .... your getting the cart way before the horse.If you have no funds yourself.. you need to find a money partner.. that's all you should be doing now.. selling yourself and the concept of buy low sell high.. what other skills might you have.. you need to really understand construction. and in Hawaii remodel cost are WAY more than other areas of the country.. so you need to get that handled.with the online bidding companies. you need to usually post some fee to bid. usually a few grand.. and you need a REAL POF ( proof of funds) .. and then all the other things you state@Sabrina Taylor  Sabrina want to be careful recommending sub too on homes that are in foreclosure.. while this may be a strategy in your state. on the west coast we have anti equity stripping laws and laws on who can even represent or talk to a homeowner in foreclosure.. so this being a national site.. want to keep that in mind..

It is a great concept, but for me it didn't work.

What that effectively means is that a NEGATIVE INCOME (read LOSS) on SCH C occurs every year -- A KNOWN RED FLAG.   

Do you have past negative history?

If its negative it counts toward the debt payment and hurts your DTI.