That way you're not locked into the deal without getting an estimate and if the rehab budget comes in higher than $65k you can easily walk away- make sure the assignment says EMD is refundable if you do decide to walk.The 70% rule is a great rule of thumb.

Cash Purchase Price: $43k, Renovation & other fees: $66k, Estimated closing: $13k.

I estimated a conservative 75% occupancy on my current house hack but stay nearly fulled booked out.

The property owners will be asking $170k, but it needs an estimated $60-80k in repairs.

Does anyone have rule of thumb cost estimates for this kind of work?

Photos will not work on estimating.

I would t go much lower unless you can estimate rehabbing accurately or bear in mind the asset class to vacancy and other variable cost issues rising.

Using my knowledge, I estimated the remodel cost, Found the estimated Resale value using comps.

Conservatively estimating new construction costs as $300/sq foot, the new duplexes could cost about $600,000 each to build (plus interest costs).

See the chart from Fair Isaac Company (FICO) below: FICO Score Pct of Population Default Probability 800 or more 13.00% 1.00% 750-799 27.00% 1.00% 700-749 18.00% 4.40% 650-699 15.00% 8.90% 600-649 12.00% 15.80% 550-599 8.00% 22.50% 500-549 5.00% 28.40% Less than 499 2.00% 41.00% Source: Fair Isaac CompanyAccording to this chart, investors should use corresponding vacancy+tenant-nonperformance factors of approximately 5% for Class A rentals, 10% for Class B and 20% for Class C.To address Class C payment challenges, many industry "experts" are now selling programs to newbie investors about how Section 8 tenants are the cure.