Just my 2 cents you are breath fresh air preach truth finally 1 other intelligent person beside cute blonde from ny. lol

If you are planning on buying it with a smaller down payment, that will also increase your mortgage costs as you are borrowing more and also need mortgage insurance.The price of the home (from the seller's perspective) is based on market value and condition, not on whether or not it matches the 1% rule.   

Also my PM handles this (not sure how automated) so it is easy from my perspective.  

From a lender's perspective? 

And you've started at a great place here in these forums.From the 1031 perspective, however, there isn't any difference at all. 

The first floor bathroom and 2 bedrooms were given a fresh coat of paint and a good cleaning.

I’m 18 fresh out of high school, I’m trying to start a real estate investing company and I need a lot of guidance, any help is greatly appreciated.

@Connor McGinnisConsider evaluating the pro forma rents from two perspectives -determine the maximum amount you can increase the rents without making any renovations and then figure out how much more you can raise them with renovations.

Below is a comparison of average annual property insurance and property taxes for 5 states:Texas: average insurance: $2,536, property tax percentage of value: 1.68%New York: average insurance: $1,418, property tax percentage of value: 1.40%California: average insurance: $1,839, property tax percentage of value: 0.75%Nevada: average insurance: $1,144, property tax percentage of value: 0.59%Florida: average insurance: $2,207, property tax percentage of value: .91%To put these costs into perspective, below is a comparison of the annual cost for a $400,000 property.Texas: $2,536 + 1.68% x $400,000 ≈ $9,256New York: $1,418 + 1.40% x $400,000 ≈ $7,018California: $1,839 + .75% x $400,000 ≈ $4,839Nevada: $1,144 + .59% x $400,000 ≈ $3,504Florida: $2,207 + .91% x $400,000 ≈ $5,847Sources: Homeowners insurance, state average property taxesIndirect costs: Rent control is a hidden tax that may limit your ability to select the best tenant, remove a non-performing tenant, and increase rents enough to compensate for inflation.

Key due diligence focus areas for this type of assetAny experienced perspectives would be valuable as I move forward with this potential acquisition.