For example, my Zestimate was low because it didn't know about the addition, full remodel, and garage conversion into an ADU.

By doing a lot of the minor demo and work myself, I kept the costs down to $85k for remodel.

Eventually I'll need to remodel the house so I'd love to get a referral to some solid help in that area! 

It was already perfectly set up for it with almost all water hook-ups in place already (wet bars, previous basement kitchens, etc.) and I mainly just had to remodel and put a few exterior doors in place to separate areas.

You have to be willing to get your hands dirty by either rehabbing, remodeling or restructuring (i.e. adding a room to a property with plenty of square footage to get higher rents) the property and then deciding if you want to play the LTR, MTR or STR game.Best wishes.

Personally I do house remodeling full time.

Should I just give her a price based the worst case scenario, a total gut job remodel, since we have to assume the worst if she doesn't want us to see it?

Purchase price: $118,000 Cash invested: $89,000 Sale price: $315,000Brought seller out of foreclosure and remodeled house from condemned to seller closing with property value increased by $196,000.00!

Since this isn’t a “fixer,” and you’re going the FHA route, you’d have to go out-of-pocket for the remodel/upgrades or get a construction loan based off the ARV, which is generally going to require 25-30% down unless you go with private money, which will have much higher interest.I see it’s pending, so maybe you got it under contract, but if not, I know you can find a good deal out there, even if it’s a smaller starting point.

One other negative that people don't think about is that even if the tenant is doing well, sometimes at the end of their lease they will try to squeeze you for more TI to remodel the place in exchange for a lease renewal.