Ideally, you could find something liquid (money market) or fixed for a duration until you need it (CD, etc) with a rate approximating inflation but rates (even with talk of some incremental raises coming) still won't yield much.I think you have a good point about return.

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. 

Draw schedule to be agreed upon prior to closing.Term: 1 YearFee to Lender: 2.5 points – ($13,125 paid at closing from loan proceeds).Interest Rate: 11.5% Interest-Only billed monthly on outstanding balance.Interest Reserve: $15,000 – approximately 6 months interest, paid at closing from loan proceeds.Once interest reserves are depleted, borrower to make interest-only payments monthly.Pre-Payment Penalty: Should loan be paid off prior to interest reserve funds being depleted, a pre-payment penalty will be charged equal to the amount remaining in interest reserves at time of payoff.Loan 2: Loan amount 490,530.60Lender Points: 3%broker points: 1%rate: 11.99%Term: 12 months (interest only)Prepayment penalty: NoneProcessing fee needs to be wired before LOI can be issued

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

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

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?

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