Canceled an escrow and found a contractor.

I'll go back from time to time and discuss my past real estate experience, flashback style. But for now I am basically starting over. I have a primary residence with some equity and nothing else. 

We had put an offer on a condo the week of July 4th. I went by to meet the tenant last night and inspect the property. I knew the area and the complex as we lived there 15 years ago. It's still a bad neighborhood. The property was in decent shape. The tenant thought it was over priced. The HVAC unit was 21 years old and having to be serviced every year because it breaks down. The patio sliding (long) glass door was original to 1979 as were the front door, side light and dining room windows. Single pane and inefficient. There was way too much carpet for a rental. Deferred maintenance. Tenant said the landlord hadn't done anything but receive a check for 5 years plus. He was willing to pay closer to market rent but he was actively looking for a place to buy for himself and didn't want to buy this unit because it was over priced and he wanted a better area.

Given the work I feel the property needed and the price that was about retail, I opted to get out. The numbers worked out that after the HOA fee, mortgage payment, insurance etc. it would cash flow a little more than $200 a month. However that doesn't include CAPEX, Maintenance, or Management (self manage). With the items that needed replacing/repairing, I figure it needed at least $10,000 divided by $200 and that would take over 4 years of cash flow. I know many break even just on the mortgage from homes they had lived on that are now rentals but since I am choosing to buy a rental, I think I will look for better numbers. Numbers that will have decent cash flow after maintenance, CAPEX, and management are covered. And I'll look for properties that aren't retail priced.

Secondly, I spoke with the contractor who helped me build  my house. He is in his 50's and done just about everything from utilities and dirt work, to vertical residential and commercial construction. He is very handy, can figure most anything out. I have some reservations as he is a friend and someone who I can always call to borrow a tool so I'll have to make sure he is taken care of. But he agreed to cover any remodel on a flip or BRRR and will even wait to be paid after it sells or is refinanced. Of all the contractors I know, he is the only one I trust with anything and thankfully he agreed to work with me. I need to finalize my HELOC and find that first deal now . . .