He hired a mold remediation company and looks like there is significant amount of mold and the cost estimate to remediate is coming to 12k. 

LTV estimates are sometimes overly optimistic, so many loans that don't get paid off by the borrower become worth very little.

You’ll want to talk to a CPA to help you estimate what your tax burden would be in both the under and over 2yr scenarios, see if you qualify for a partial exclusion, etc.It’s difficult to blindly say hold it or sell it now if you don’t have a full picture of what your tax burden.

That being said, I’m having a hard time understanding why your client is looking to estimate the NPV of his triplex.

With property taxes the estimated value is just used to apportion taxes "equitably".

I initially paid out of pocket for most of the interior updates / rehab costs when the family moved in, but now it could use new roof shingles (which we've got estimates on) and some minor updates in the kitchen and garage.

He never contacted the contractor to discuss estimates.

Greetings all,We’ve all read methods on how to analyze a real estate deal, running numbers, estimating rehab costs, incorporating taxes, capital expenses, etc.

Also, how do you estimate market rent?

@Dayton BourassaI would also be very cautious of thinking you can increase the current rent by 35%, I know you passed on this deal, but when analyzing deals it's important to be conservative when estimating rental income, if you are not conservative with your estimates then you need to account for more vacancy, which is essentially doing the same thing as being conservative.