Where comps come in to to compare "cap Rates"  (a measure of financial performance) of recent sales. 

You didn't write how much 'sweat equity' you put into this place, but it was likely well worth it given the $400K cash out.  

Permitting does take quite some time but you should factor this into your underwriting.

They should pay just like someone on a regular lease pays - cash or equivalent into your bank account. 

Meaning they went into a standalone bank account (not mixed with your other personal funds). 

Ohio is a great market to be invested into as you can still find positive cash flow (aka the 1% rule) and tons of appreciation here!

I try to get it in ASAP before I put a lot of time into coordinator with potential applicants who might not be ideal tenants. 

Hey Denny - For rehab costs, a good place to start is breaking things down room by room and getting rough estimates for common repairs like the roof, HVAC, kitchen, light cosmetics, etc.

For those that qualify for conventional financing its another negotiation tool, for those that do not its a way to get into real estate but many do not understand what it is they are signing up for.Regarding it being good for an owner, again it goes back to the borrower, if I have a borrower with 800 credit and I control cashflow its far different than someone with 540 credit.

Plus, as you mentioned, you could always tap into the equity later on to continue expanding.At the end of the day, it’s about what fits best with your goals.