I tried to be conservative thinking that the house will not appreciate (although it probably will only appreciate at 1%.Any thoughts?

FMV conservatively $225k, senior note UPB $135k, the 2nd lien note I am buying UPB $19k with about $10k of arrears.

It's a nice 3/2 in a decent neighborhood, and because of those improvements and general appreciation in the area, I think it's now conservatively worth about $175-185k.

@Scott Houin are there any retention ponds, conservation areas where they may spray for bugs.

estimate conservative when you're new, use real figures as you acquire.

the reason I ask is your expense numbers are conservative. 

Most new investors have full time jobs, so add 40 hours a week there plus drive time to and from work...conservatively 2 hours a day = 10 more hours. 

It's a rough, cover our butts (plenty conservative) and simple enough to even often run the general calc in our head as we are looking at evaluating projects.I know different people do things differently in this community but we like that.  

USAA is requiring a $650K replacement policy, which is an extremely high (more than double my very conservative estimates to rebuild!). 

Conservatively, with renovations, this area will bring $750/month easily.