If they are below market rent, that is OK as long as there is room for improvement and tenants won't be an issue.

If you'll be cash flowing strong, there might be some room there to pul some money out and use it for a downpayment for another house.  

Our insurance covered new floors for the entire house as well replacing subfloor in bathroom and two adjoining rooms.

At first glance buying 40% below ARV i would think that there would be room but i guess numbers don't lie.

There are new laws affecting California transactions in 2024, some of which are very relevant to investors and house flippers.According to the California Association of Realtors, starting July 1, 2024 most 1-4 unit properties that are resold within 18 months (aka flips) must disclose:- repairs, renovations, room additions and structural modifications that were performed by a contractor with whom the seller entered into a contract- the name and any contact info for the contractor for any work over $500- any permits obtainedSo you still can be an HGTV star, just make sure you do it by the book. :)Have any of you flipping in the Los Angeles area been affected by these new disclosures?

We are real estate investors and business owners from Grande Prairie Alberta.  

Two of my rentals have some leaking from the ceiling in the rooms and don't see much actual damages on the roof itself.

Pricing Strategy: In a declining market, offer slightly below fair market value to ensure room for negotiation.7.

So thankfully since I based my numbers on $230,000 ARV we still have some room to go lower. 

Also, have heard of people turning renovated living space into "non-living rec room" which can then be converted into an ADU.I think the number of ADUs is OK.