The black mark on the fence would normally be chalked up to ordinary wear-and-tear unless it were egregious.

House is one property on a large lot but I wanted to look into splitting the lot in two and having two separate new builds... the house that’s currently there is basically a tear down but I wouldn’t even know where to start to do something like this and wanted to hear from anyone who has done it

It might be ideal if you get a long term tenant that is a real wear and tear specialist, one that squeezes the last useful life out of all the components... then out with the old, in with the new...Best of luck!

Both units are identical floor plans and I was able to add a third bedroom (making each unit a 3 bed 2 bath) and tear out the kitchen pantries creating twice as much counter space as before with a much more open floorplan.

They feed off the grubs in the lawn and will tear it up.

First you should consider there to be considerable ware a tear on the property with tenants.

, this sounds very high even if they did a full tear off down to the joists.

Greatly appreciate it.Not planning on any wall tear downs.

Upon turnover of the property the condition of this area (both beds) was above normal wear and tear and classified as neglect.

.% down of the purchase price and the rehab costsCan be used for primary residence with 1-4 units (could also be looked at as a disadvantage)  When using 2-4 unit property, projected income from other units can be used to qualify 6 months' worth of mortgage payments can be rolled into the renovation budget if the house is deemed uninhabitable by the HUD consultantCredit scores can go down to 600s (lender dependent) DTI can go to as high as automated underwriting system allows (typically 56.9%)Allows you to buy a property in any conditionCan use it to fix minor repairs all the way up to basically a full tear-downFHA 203k Disadvantages: Interest rates tend to be about .25-.5 higher than regular FHA loan Additional costs include HUD consultant fee, inspections, title updates, and supplemental origination fee (Cost of doing business, but this is built this into your numbers, so it's no big deal)Must use a licensed General Contractor for a full 203k or up to 3 specialized contractors on the limited 203k Must hold onto the property for 1 year and live in it.