They will generate a report to you based on their findings.Type 2 - conducted by an engineering firm where they will have you complete a questionnaire.The questionnaire will ask you details regarding the house and therefore, I would recommend having a home inspection or appraisal at the time of completion.The above two studies have pros / cons and differences in cost and turnaround time.Best of luck.

Expenses for initial repairs before renting are usually capitalized and depreciated.

We were able to refinance with our go to bank at a decent rate in this environment which allowed us to pull out our initial investment and renovation cost.

It's probably something that rides on top of the inflation but not very likely to double or triple your initial investment opportunities for sure.

Since i put 20% down, i am hoping i can do a cash out refi (will have enough equity) so I can take out my initial investment.

Don’t get discouraged by the initial investment.

They analyze components such as cash flow, principal paydown, appreciation (both home and renovation), initial equity, depreciation, and interest deductions for tax savings, giving you a clear picture of individual gains and ROI over 30 years.

I understand not buying more up there, but your initial investment there will turn out well.You can check out the BiggerPockets video podcast and leave a comment if you have questions. 

There are plenty of short term rehab loans available that will help with the initial purchase, give you rehab money, and don't have any type of prepayment penalties.

I would focus on "Ugly inventory" but would pass an appraisal and not be "Subject to" so that I can renovate and refinance on the ARV in as little as 6 months to pull out my initial capital and enough to put down on the next REI.On the flip side Indiana and Ohio would also offer a sale price to cash flow ratio since you can still find a great deal in both states.