It needed nothing but carpet and paint to make it rentable in the $1200 range.

- Capital Improvements like New Flooring, New Paint?

The roof is 3 years old.The operating costs are 30k/yr not including reserves for big ticket items and vacancy. 30k includes water sewer trash, taxes, insurance, and about 5,000 extra for misc.Obviously, calculating things using his numbers paints a very pretty picture.

Some paint or an entire kitchen?

Not being a jerk, just trying to paint a picture of the reality in most hot markets.Maybe you'd have less competition in Colorado Springs and could scoop something up there. 

Other folks like the idea of paying a flat fee in dues to the HOA because they know they don't have to worry about cutting a lawn, maintaining a pool or fitness center, repairing or painting the exterior and so on.I bought my first property at the age of 20, and bought a townhouse specifically because I wanted an HOA.

We have obtained estimates for complete upstairs remodel including paint, flooring, all new bathroom, windows, appliances, central air for $13,100.Numbers:85000 for duplex + ~1400 closing (after split 50/50 per agent recs), + 13,100 remodel = $99,500 total25500 (down payment at 30%) + 13100 = ~38600 required up front 395.85 (P&I at 7%) + 180.36 (CapEx after remodel) + 222 (tax, insurance, vacancy monthly) = 798.21/month expensesAnticipated rent: Unit A = ~450 (hoping for section 8 revaluation if become owners), Unit B (after remodel) ~600 = $1050/monthFinal Numbers: ~250/month cash flow, 8% cash on cash, 3% cap rateMy questions:1.

This house is a 1000sq/ft ranch.- Cover interior walls with drywall and paint?

In general I think they are painting a very rosy picture and paper numbers that don't seem aligned with reality.

Let me paint a fictitious story for you to illustrate what I'm trying to ask. 10 years ago, I buy a property for 80k cash that rents for 1200/month.