Thank you for the infomation, Kenneth.I'm partnering with a land developer who has 20 years successful experience in this industry.Furthermore, he knows the head of the county, engineers and many others.The properties are way below market value.With that said, there is almost no room for mistakes. 

Electric baseboard heat is a cheap way to replace an old furnace that feeds several units which you pay for.8.

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!

I'm a software engineer by day and aspiring house hacker by night.

In order to find a solution to any problem the first step we scientists and engineers do is, define the problem.

You, must be an engineer, LOL, Good luck to youBTW I have asked several times, how many have you done in those areas. 

I purchased my first property couple months ago in Feb.  Have a good tenant.  My first property was turnkey, ready for rent. Should I wait until I have enough savings for a 20% down payment and do the same again?  I ...

That news is doubly good for me since I am an engineer/project manager.

By the time it reaches the tax sale, the property has often been vacant for many years, with all the electrical, plumbing, and HVAC components having been stolen. 

Here's what the quote covers:- Conversion of 2 bedroom, 1 bath main house to 3 bedroom, 2 bath (~1040 sf footprint)- Demolition of existing walls (existing dining room wall, wall between kitchen and living, bathroom closet)- Finished Shell (Reframing opening to living room and kitchen, shifting openings for bathroom/bedroom, new walls at bathroom and dining, level - Replace all aluminum windows with fiberglass windows and screens- Upsizing plumbing, and relocating fixture locations as necessary- Upgrading electrical panels- Assume heat pump and ductless mini-split for heating and cooling- An allowance for kitchen appliances including combination range, hood, dishwasher, microwave, refrigerator, and washer/dryer- An allowance for mid-grade plumbing and lighting fixtures (Delta, Kohler, or equivalent)- Mid-grade plumbing and lighting fixtures (Delta, Kohler, or equivalent)- Ikea cabinets or equivalent with solid surface countertops, includes island- Assume solar system to be installed on the house including battery storageFor the garage ADU, the garage would need to be demoed and rebuilt, but we would benefit from building within the setback since the garage is on the property lines.