I have been looking into the Fort Worth/Dallas market, but I have a little while before I can actually apply for a loan because I currently have no income.  

We really want this 3 unit property in a nice area. Heres the challenge: Presently 2 oil tanks there. One burner is gas, the other oil burner.  2 units are on 1 gas and 1 electric meter.  Cost for the  conversion from...

My co-worker is looking to sell his rental for what he owes on it....which is about 75% ARV....the property needs about 15-20k worth of work inclusive of a new roof.

Based upon comps in the area, it should be worth 220k-225k. 

@Stephen Sokolow I have a 20 unit there in South Bend, and would love to buy more if there was anything worth buying.

Increase your application fee to cover the 15 - 30 minutes it takes you to process.It's nothing worth stressing over.

There is also currently a new 4 BR septic being installed, and there is also an in-law apartment downstairs.I estimated repairs at $20,000 by experience I've had in the past doing construction and home improvement and I can also probably do 90% of the work myself unless there are plumbing,electrical, foundation or other major issues beyond my skill set.I used zillow's comp tool to give me an estimate of what the house is worth and zillow says $365,933, which seems a bit crazy to me but who knows.

You own 3 rentals bought at 100k but in 2006 worth 200k, fast forward a few years and you sell for break even or maybe loose a little.

Such prohibited transactions come with extreme tax penalties and are not worth risking.Your IRA is not an option, nor is that of your spouse.  

Just as important is what is it worth to you. i am going to use a cash flow analysis even for a 2-4 unit bldg.