If the fixes are cosmetic or minor, that’s a big plus, but if there are larger repairs (roof, plumbing, etc.), ensure you budget for those.

We put in around $30,000 to replace the roof, floors, paint and kitchen.

Older buildings with older systems: plumbing, electric, HVAC, roof, tend to have more maintenance costs than newer properties.  

Even if you had a dozen mid term rentals in a cash flow market (which would probably be $2-3M of property), you're probably only going to net $4-5k/month hoping to avoid the big capex expense like a roof or furnace.

Also the inspection photos show some of the roof joists look like they're partially cracked.   

This was a 3bed 1bath that needed everything besides a roof.

We are still under construction but we ended up having to do everything including sub flooring, attic, roof, HVAC etc.

But during inspection of the attic, the bottom of the roof decking and the rafters were black from a long ago fire (5+years). 

I've heard of:1) Flat % returns for each month2) Equity in the deal in case investor can't cover monthly payments to investor3) Lump sum return after project completion based on agreed % of money lentAnyone have some thoughts here?

It's really hard to compare with other rentals in houses in the area, there really aren't any that I can tell are as nice as this one w a new kitchen, etc.The REI group also suggested to offer the utilities (already set up for the whole house) at an additional flat fee.