If the house is listed as-is, there won’t be much room for negotiation (ie. seller concessions/credits), but you can offer a price that factors in the rehab components.

However, it seems risky to own a property that you would barely break even on each month in the case of an unexpected emergency.

Hire a contractor or GC with clear terms for execution and completion.Secure financing early, whether through cash, private lenders, or hard money loans, ensuring reserves are included for unexpected expenses.

I also have multiple streams of income and the ability to reduce my expenses sharply if needed to payoff a major unexpected expense.

You have expect the unexpected.

Just keep in mind that it's not all about rate and fees - there is a considerable knowledge and expertise component that should be considered as well.

@Alex SilangFirst I assume it’s a month to month lease as you cannot raise it if it’s a long term leaseFor me that is not something I would do, If you want to raise it to market rent then do it, don’t adjust rent because you had an unexpected cost.What if they turn around and walk?

How to mitigate unexpecting costs that come up, is a battle that happens on every deal, but how we handle it is to keep the reps up.

Especially in Iowa when it is 0 degrees and 30 mile per hour winds.These properties we are doing have the Teak component, but they all have secondary values with locations, building sites, phone/internet reception, water, palm trees, fruit trees etc. 

For example, when something unexpected comes up and your costs risk getting out of hand, you might change the scope of work a little.