The rents are pretty low in the area but so are the prices.

.- If doing value add, which market do you think your efforts are going to add more value, the low property cost area or the high property cost area? 

1) I think it’s “funny” that not one news article I ever read for the last 5 years had headlines like “Housing at historical record lows!

We feared it was too low, but we were not willing to accept anything more and left it in Gods hands.

From a financial standpoint, the key is to ensure you're purchasing properties at a price low enough to make rehab costs and refinance achievable.

You can go as low as 10% down and there are programs that allows this for first timers with good credit.3.

This is pretty clean.Scenario 2:  Your partner has owned the house for 15 years and has been taking accelerated depreciation, so the book value of the house is very low. 

Quote from @Tyler Garza: Deal :Duplex Home2 beds / unit2 baths / unit3,000 sqftAsking 300k60k downEst rent/yr - 31,2005% Vacancy20% Op ExpenseMortgage 240k assuming 7%Results: CF - 6,600Cocr - 11%Cap - 8%Looking at this for a buy and hold and trying to determine if I am analyzing this right@Tyler Garza I can get to your COC of 11% and cap rate of 8%, but since I don't know your loan payment or amort, I'm not sure how you got to CF of $6,600 - I'm getting arond $4,600.And a couple of things jump out at me with your assumptions versus most of my CFO clients: 1) a 5% vacancy rate and 20% Op exp margin seem a little low, 2) an LTV of 80% LTV (with a 7% interest rate) seems high unless you're house hacking, 3) Depending on the location of the property, the $1,300/month/unit rent may be low.

Install landscaping that super low maintenance and reduces water usage and looks nice.

Idle money is the quickest path to low returns and does no good for anyone.