Nail on the head.

HomeReady also allows Boarder Income (roommates) if you need it to qualify.The rates are slightly higher for HomeReady than FHA so it would be best that we run an analysis to see which is the better deal for your future plans with the property.A few other differences: HomeReady has income limits, FHA does not.

If we accept *and discover no other problems with the property* we will be in for 35k.The returns seem decent still, but I know that this house will probably never be worth more than 35 where it is located, and we would have to do  more work to get it there, so we would have more in the property than its worth.So run away, right?

If you run across this person, run the other way.

We do turnkey in Birmingham and we focus solely on B/B+ properties, which typically run from $65k-$120k depending on the property and the locations, average rent of $950, so we know the area well.

I may do a lease/purchase if my numbers run. 

I'm in Los Angeles and stumbled upon 2 run down seemingly uninhabbited houses in a really nice area.

I think it's a great way to get your feet wet and see how a high volume operation runs. 

Buy and hold Is the direction I would like to head in the future.

@Matthew Olszak The price is not per SqFt but he did say it won't change, which in my head it means it is WELL padded.