These two properties were really good for me to analyze the nuts and bolts of the deal and with the help of your input I feel much better about how I'm looking at/for these deals.I ended up passing on the 3 family, as each unit needed work to be done, (two a little more than just paint&carpet) and the owner ended up going with a different offer at least $20k higher than I felt comfortable with.As for the large single fam, property has gone under agreement after I initially offered on it, I believe it went for $285k range which is a fair price, (ARV conservatively $430k) however with my lack of experience in flips and the property needing a complete renovation (near $100k estimated) I was not comfortable in taking on the project.For now I would like to get into a owner occupied 3+ family, for favorable loan terms (1st time home buyer) and cash flow of tenants.

Owner's daughter was going to rehab this, but after putting in new boiler, new gas line, cover original hardwood floor with cheap blue carpet, and hodge podge kitchen (with 3 different cabinets), she got tired and wants to get out.

(appliances, carpet, hvac, etc.)I'm thinking if I flip I would just leave the basement untouched but anyone have any thoughts?

No puke stains on the carpet?

When we pulled up the old carpet and pad we found these holes all around the edges of the rooms.

I would guess you would be slightly low at a $1000/yr, especially when you need to flip the house between tenants or preparing for sale as you'll probably need to replace carpets/flooring, paint, etc. among other things.

However we still smell cigarette smoke, so it must be in the carpet.

Lots of discussion about bullet proofing rentals and what flooring holds up best (hint: the IRS assumes flooring lasts five years, I've been told judges here in CO assume carpet lasts three, so if the place has carpet, plan on replacing it every few years.)I think you're thinking that because its a nicer rental that you will have less issues with tenants.

Any damages (ie nasty carpet) would come out of the security deposit, but if the carpets are that bad then she's no getting the other unit.I'm fine with the extra $20 per month the previous landlord set up for the dogs, but also would rather have extra amount in the security deposit for cleaning up any pet issues.

Lets say new paint, carpet, and a smattering of small handyman fixes.