Additionally, there is a basement with a kitchen and cabinets, 1 full bath, washer and dryer and a refrigerator.

I think I'll still be under budget though...Bottom line projection - with PITI being right at $650/month, gross rent projected right at $1400 budgeted (still less than the 1% rule mind you), 6.5% Maintenance budgeted (i'm fixing a lot of things during the rehab), 6.5% budgeted for vacancies (brother-in-law COULD NOT find anything available for months), and about 5% for CapEx (already has a new roof, refrigerator in unit 1, HVAC unit is fairly new for unit 1, and new counter tops in unit 2), the monthly cash flow came out to ~$441/month and right at 9.95% Cash-on-cash return. 

This is a total lie because they fail to tell you it is impossible to have the house rented every day and the cost for a management company to constantly have to keep the house rented and the cost to clean inside and outside the house, change bedsheet, clean bathtubs, toilets, stoves, refrigerators, and make the house in pristine condition for each new guest is very expensive and time-consuming. 

These tenants broke the granite kitchen counter tops, three bathroom sinks, the kitchen sink, stove, dishwasher refrigerator and the list of damage is several pages long.

The IRS auditors are looking for blatant cheating and looking for messy and accounting and record keeping where mistakes are apparent, but when you present nice clean records the auditors know the business or person they are auditing are on top of their game and a few missing invoices is an expectation.The difference between an accountant and a CPA is a CPA sort of certifies to the IRS that when the IRS is doing an audit that the books have already been certified by the CPA and this is true because when my CPA compiles my books before the end of the year he calls me on the phone and questions me about some transactions like when I paid $7,000 to an appliance company for one stove and one refrigerator.

If anything - on top of the fire- he had vandalized the refrigerator by writing all over it in marker and since refrigerators are considered personal property, that wouldn't even be covered by the insurance anyway.

You may cook what's in my refrigerator or eat what I cook or bring your own food to cook.

So far I have to had someone fix: HVAC, replacing hot water vales under kitchen sink, wiring in one wall, leaking in the master bathroom, falling of cabinet in the garage (not sure what caused it), and now the leaking of the refrigerator.

My section 8 tenant asked to buy her own appliances (electric stove and refrigerator) is it a good idea to allow that and make her sign and addendum to be attached to the lease.

The real question is why don't you want to spend for a nice refrigerator?