I’m glad you were able to move on without signing, shows the agent understands/is a good guy/gal, or knows other firms wouldn’t require such a signature. 

This would be my first real estate investment, making the decision even more critical.I understand that backing out would mean losing the $2,000 earnest deposit.

It took new construction costs from $800-2500 down to $325 / SF and instead of 2 years it can be done in 8-12 months (design, permits, fabrication, shipping, and erection) depending on how much homeowners customized the standard plans. 

Rehab costs and ARV (After Repair Value) are key parts of evaluating deals, so it’s great that you’re diving into these concepts early.For rehab costs, creating a rough estimate starts with understanding the scope of work and local pricing for materials and labor. 

Please note the information provided below is a layman's definition designed to provide a basic understanding for the general audience.

The only way for you to understand the situation and evaluate your options is to ask a lot of questions.  

I understand the pros and cons of both so no real immediate preference.

We have seen maintenance costs skyrocket over the past 2-3 years and every case is different but here are some general guidelines for reputable (non-crackhead) investor level pricing in our area of operations:Furnace and A/C replacement with lineset for standard 3 bed 1 bath bungalow.

Aside from strategy you must understand how to underwrite a deal. 

Folks just need to understand things never stay the same..