The rehab component is the riskiest part, and if you aren't careful it is possible to over renovate when you are new at this.

If the value add component is put on pause for a few years in relation to ability to increase rent I am curios wha part of the deal the return will come from? 

As part of that, I'm trying to figure out the best way to go about a home inspection so that there aren't some major surprise costs that will make the deal bad.I have 2 major questions:1. what are the necessary components of an inspection for a rental home (I want to do the stuff that will avoid big expenses down the road and will avoid law violations but nothing extra or unnecessary).

(I think I could maybe increase rents down the road for having it too though so that may offset)- My PM mentioned that "Unfortunately this is a major component... could be grounds for your tenants to withhold rent payments".

So for the rehab, the plan is to replace all of the major components of the home: New HVAC unit (with additional duct work), new roof, new pool equipment, and an expansion of the driveway.Smaller items will be to redo all of the bathrooms, frame up walls to split the home in 2, and a new kitchen in the studio.Final Thoughts:    I hope everyone enjoyed this original post.

'Granted they don't fully advertise that they are investors, or have an RE investor component to their skillset.  

Not saying you should run your business out of fear, but it is a real world component to consider

Once you know the houses in your area pretty well, using those 25 components makes it a lot easier to estimate back-of-the-napkin.For example, I know that for a specific type of four bedroom, two bath house in my area, it costs about $2,000 for all new electrical fixtures, about $2,000 for all new plumbing fixtures, about $3,000 for interior paint, about $7,000 for new flooring, about $8,000 for new cabinets and countertops, about $2,500 for all new appliances and about $1,000 for miscellaneous cosmetic stuff.So, when I walk into one of those houses, I know right off the bat that I will spend about $25,000 for a full cosmetic rehab.But that exact same scope of work for a different type of house with different finishes in another state where I rehab would cost much different for a cosmetic rehab. 

All the seg does is break out the different components of a property and depreciates them based on their life spans as opposed to the overall property's of 27.5 (for residential).

The difference is that with turn-key the company usually buys the property up front, fixes it up, rents it out and then sells it to the investor.There is also a component of this with some project managers and/or property managers.