Unit requires minimal rehab work (cleaning, new paint).

Needs new AC unit, full interior paint, 600 sq. ft. flooring. 

Here’s some details...House is worth 235-250KWe owe @80KMortgage right now is $9603,200 square feet 4 bedroom 3 bathJust replaced roof, kitchen, new carpet, paint, most of the windows.

Carpet, walls, doors, paint etc.

CapEx is included, but is considerably lower because it's a very new, excellent condition property (I considered things such as paint, appliances, flooring that would be needed while we still own the property).Purchase Price $350,000Purchase Closing Costs $1,300Total Project Cost $351,300ARV $350,000Down Payment $12,250Loan Amount $337,750Amortized for 30 yearsLoan Interest Rate 4.6%Monthly P&I $1,731.46Total Cash Needed $13,550.002% Rule 0.85%Initial Equity $12,250Monthly Income ($1500 per unit) $3,000 Monthly Expenses (Including CapEx) $2,607 Monthly Cashflow $392 Pro Forma Cap 7.28% Total Cash Needed $13,550.00Cash on Cash ROI 34.73% Purchase Cap Rate 7.28%Est Vacancy $150PMI $200Est CapEx $63Insurance $80P&I $1,731.46My only major concern is that I'm not meeting the 2% rule (and just short of 1%, even), but this is probably the closest property I've seen, and has a significant cash on cash ROI.

The house was built in 1938, it's a craftsman style home, original hardwood flooring in good shape, original windows but it very good shape, the walls and ceiling had been filled with blown insulation, had a new roof installed in 2017, and the sellers were willing to pay 5k to have the house painted to the color of your choice.  

@Heather Wingenbach  This should help: http://fhahandbook.com/appraisal-guidelines.phpPay special attention to peeling paint (even a little bit), loose hand rails, cracked or broken glass, crumbly cement steps, etc. 

My client has cleaned up all the trash/crap the tenants left and is planning to clean inside and paint a little to make it more presentable.

My client has cleaned up all the trash/crap the tenants left and is planning to clean inside and paint a little to make it more presentable.

(e.g. the extra sheet of drywall, nails, tape, paint, primer, new trim boards, etc.)4.