To start, the numbers:3 bedroom, 1.5 bath 1700 sq foot brick SFH with bonus room.Purchase Price: $59kAppraisal: $105k as is with estimated $124k after rehab.Renovation budget: $20k.Renovations include: new flooring in bonus room, kitchen and baths. total renovation of bathrooms, new cabinets, crown molding (to cover bad drywall job by previous owner), buff hard woods, paint exterior, paint interior, remove awning, remove side door and seal up, fix low spot in kitchen floor, and remove the non-permitted fire place.Estimated Rent: Initially I budgeted $950 per month based on another rental I own in a similar location, but  two houses on the same block were recently rented for $1200+.

Here's the thing I'll say:Appreciation is not an added bonus - it's an absolute necessity if you want to make the investment work. 

I pay multiple phone reps an hourly wage and then a bonus for any appointment they set that we close on. 

Only difference is increased bonus depreciation on equipment, but the theory and methods for everything else remain the same.

As an added bonus, you were able to confirm that the numbers I came up with all made sense. 

Being close to home is a bonus...not one of the top 5 requirements. 

Big bonus there is you get to learn all about what it takes to build and renovate which is a huge part of real estate.

If they say 2 weeks, I will put in a due date for 3 weeks and add a bonus for finishing early and a daily penalty for being late.3) Get inspections.   

Examples include depreciation, amortization, and business use of home.And here's a cool thing, thanks to tax reform: 100% bonus depreciation. 

Do a couple of math examples and compare your rate of return, factor in potential appreciation (its a bonus but dont let it rule your decision making process) for example house A costs 100k brings a 8% annual ROIHouse B costs 50k but brings a 11% ROIthen the answer becomes obvious, you want to deploy 100k into 2 of house B.