We ended up having the first offer fall through because of the assessment being lower then the listing price.We tried to explain that the city is unaware of the remodeling that happened and once they are the assessment will increase, but in the meantime enjoy the lower taxes.

If you buy for 125K and put 25K into it and assuming you do a decent job with the remodel, this shouldn't be a problem.

You can get a property that's completely remodeled that's almost perfect but there is still things that need to be touched up.

Its looking like acquisition is 25k (shells) with 75k for remodeling which is cheap (good friend of mine) and market rent for 2/1 is $1000/m and 1/1 $800/m.

going to convert the 1/2 bath to a full bath, refinish the wood floors throughout, gut and remodel other full bath and same with Kitchen.

The house is being extensively remodeled, contractors crawling on top of each other …we have painters in one room, cabinet guy finishing crown molding on those 42” cherry beauties, there is a deck guy shooting the heck out of nail gun outside, garage guys patching the siding, mortar guy patching and tuck-pointing the chimney in other words … scheduling mess, aka typical flip scenario ohh and there is a plumber who just pulled in hoping to replace the missing copper The guy walks to the basement and falls down the stairs (faulty railing).

They, assuming the majority of the risk, get to keep the profits.In a typical deal (well - almost every deal we've done), I fund 100% of the purchase price in addition to repair/remodel costs.  

Has the property been remodeled recently?

Thats just bonus.Both were purchased about 15% below ARV if you include the remodels needed into the purchase price... about 30% straight up.My plans for the future are to seek to acquire more income producing property.

If you are able to close, but not afford to rehab, find someone to lease purchase and work out an agreement where you share costs for the remodeling.