If any of the "Big Five" systems (HVAC, plumbing, roof, electrical, water heater) haven't been updated recently, they still should be budgeted, even if you expense them later.Also, if you're primarily buying for cash flow, then this seems like a whole lot of work for just 7.75% CoCR!

You can then be pleasantly surprised if you find a solid subfloor, watertight roof, or salvageable drywall.

New roof, exterior doors, flooring, paint...

By this, I mean multiple generations under one roof.

I do feel like you should be paying something, but $1400 is steep for a few stains in one room. 

And their roof loss settlement is "variable by roof age", not actual replacement cost, nor depreciation adjusted (most insurances will hold the depreciation portion of a claim till the repair is done and only then release the funds).Make sure you compare apples to apples when shopping around, pay attention to what they give you for "free", what deductibles apply and when exactly you can get coverage from the insurance and to what limits.

A full rehab on an 1,800 sqft house will never be so low if it needs all three mechanicals, the roof, full interior, plus foundation repair.

Between interest rates being day high, construction costs being through the roof and propert taxes and interest rates climbing by the minute, how is this profitable?

I would also qualify it on no damages that exceed the security deposit.Hopefully you have detailed pictures before renting, and is a good reason for regular inspections to check that HVAC and other equipment is functioning properly, and allows inspection for damage from leaking roofs, etc., as well as tenant damage.

Remove old chimneys that leak, and repair roof, assuming they are used anymore.13.