Doing this to the extent that debt service washes out all cash flow seems very risky.

I am not a wholesaler, neither was he.

In the end, we put in an entirely new central A/C and forced air heating system, all new pipes, new sump pump, and a lot of new electrical.In any event, despite being way over budget, I think the rehab came out pretty nicely…The exterior:(Before)(After)This laundry room space later became the breakfast nook and part of the kitchen.

Simplisticly speaking my rate has to be 5% for the next 5 years for it to be a wash (I saved 1% for 5 years with ARM and lost 1% with ARM over next 5 years).

So it would depend on your market: are there more people who make 120k a year who don't want to (or can't) buy a house or people who make $9/hr who can't buy a house.Another aspect is the ability to add value to an apartment complex from raising rent, adding coin-op laundry (debatable on the profitability), rental storage, soda/vending machines not to mention the natural appreciation.

New lines to the water heater, laundry, bathroom and kitchens.

So, he called his electrician who gave him a couple ideas, and he said he'd be back the next day, which he was.  He

I wouldn’t feel comfortable going any longer and it’s a multi so there’s a coin op laundry.

But it should wash out pretty good.

If I rent to travelers I will need to have it fully furnished, which I estimated would be another $10,000 to $12,000 when you figure everything from wash clothes to beds and couches.