@David F.As Russell mentioned co-ops are probably 1/2 the price of a condo and you would also have extensive costs to set up a co-op and typically it’s my understanding the builder funds the first 1-2 years of reserves.

However, I still struggle to understand the art of estimating rehab costs. 

These dishonest lawyers will start adding on all kinds of BS and start running the cost up so much as time goes on that you have no choice. 

However, you make a great point about starting local and dodging PM costs to start...

I imagine cost of labor might be a little bit cheaper in Idaho compared to Connecticut as we ended up paying 10k for gas furnace and 5k for AC with 10 yr warranty for Lennox product.  

The success of such investments depends heavily on local market conditions, and maintenance and upkeep costs can add up, especially as the property ages.

Others may argue that higher rates are bad as it drives up their borrowing costs. 

If a person has RCV or ACV policy makes a huge difference, than question of what coverage level people had and if they had policy add-on's that cover cost over-runs and all that fun stuff, not to mention contents. 

* The conversion would be costly. 

This puts the home underwater.I've calculated the following two options: To sell the house, it would cost me about $60,000out of pocket.