As you know labor is the biggest expense and sometimes the owner can float out a lot of the expense on time for the products.A good example of this is a 4 plex that needs complete rehab minus major electrical or plumbing and the bid from the contractor may be $44,000 in labor ( $11,000 per unit )   The contractor may suggest I will take half of the first two years of rent or the equal of same. 

Who does he have to do framing, electrical, plumbing, HVAC, drywall, paint, tile, cabinets and counters, flooring, roof?  

The water heater is not tankless, but it is out of sight and it is electric. 

(Walls, electric outlets, etc.) 

I am an ambitious retired network engineer who started that career after closing down my first business which was in the automobile industry، sooner later I developed an interest in investing in my property and other ones by using Airbnb. it was a really funny story to begin but you know that after one year I would be managing 33 luxury apartments distributed across one of the fastest growing communities in my country.

I also have contractors, engineers, investors, lenders, etc. that I pop in on when I don't know the answer to something, and others that just have different experience in a niche I want to learn about.

Keep in mind this property is relatively turnkey with most capital improvements completed within the past 5-7 yearsIn the middle of the month of May, I get a call from my tenants saying that their electricity got cut out and the oven and air conditioner don't work.

I'll throw in a few more things to consider:Property Assessment:Structural Engineer Evaluation: Before proceeding, hire a structural engineer to assess the extent of the damage.

What ever timeline a builder/architect/engineer quote you add 6 - 12 months.

He repeatedly kept saying he was the best, and anytime I needed work he would say his contractors are the best.issues with  the house: Foundations caving it with countless stress fractures and rooms sinking in with doors sticking making them nearly impossible to open. 35 years of vacancy at that house led to house walls being filled with mice... they chewed on the electrical wires and chewed holes in every wall and next to outlet covers and they chewed the entiee inner door frame from tbe walkup attic giving them easy access to walls throughout the house.