We drive 10 year old cars, we wear non-brand clothing, we keep the heat at 65/62 in Denver during the winter months (September through June :) ) and at 75 during the summer.

Now that the cold weather has hit I've come to find out the heating system was done as a hack job that needs to completely get redone - and ASAP.  

And if you add in other major mechanical things...it might run up to $10k...also on the lower rent range you will need to have a higher percentage because while a roof's cost will vary by the size and class of the property...things like heat and air and water heater and appliances are relatively fixed therefore being a larger percentage of your rent.

And with custom construction, you can maximize your building for solar energy and passive heating/cooling/lighting, plus any other features that apply to your situation.  

At 93k I can get 10% CoC and $200/month in profit.Here are the numbers as I see them:% Down Payment 20.00%Down Payment $23,800 Remainder of closing costs$5,500.00 Total Due at Signing $29,300 Mortgage Rate 5.00%Length of Mortgage in years 30Monthly Mortgage payment $511.05 Taxes $135.25 Sewer and Water $- Trash $- Heat/Utilities $- HOA $- Cap Ex and Ops $150.00 Insurance $65.42 Mgmt Fee $103.50 Vacancy $93.15 Total Expenses$1,058.37Total Revenue $1,150.00 Cashflow/month $91.63 Cashflow/year $1,099.55 Cash on Cash Return 3.75%

This is also how I would sell him on the deal.Estimated Minimum Closing Costs $5,500.00Estimated Closing Costs Based on Prop Value $5,500.00 Repairs/Construction $10,000Total Loan with Seller Concessions $100,000.00 % Down Payment 20.00%Down Payment $20,000 Remainder of closing costs $15,500.00 (this assumes you are paying for the renovations out of pocket)Total Due at Signing $35,500 Mortgage Rate 4.75%Length of Mortgage in years 30Monthly Mortgage payment $417.32 Taxes $100.00 Sewer and Water $- Trash $- Heat/Utilities $- HOA $30.00 Cap Ex and Ops $150.00 (this is your future roof replacement, hot water tanks and other major items)Insurance $250.00 Mgmt Fee $140.00 Vacancy $113.40 Total Expenses $1,200.72Total Revenue $1,400.00 Cashflow/month $199.28Cash on Cash Return 6.74%

It was vandalism and theft, which left them with no heat, no running water, broken windows, etc.  

I agree about the sticker shock checking things out online but with the vast majority of properties here 100 years old, and most severely neglected, the maintenance and heating costs alone are absurd and almost every one will need a new roof, foundation work, lots of electrical work and more significant repairs that just make it a nightmare and the low prices not worth it in the long run (in my opinion and those I've talked with in the business up here). 

We got a couple quotes from general contractors at the beginning of the process in the $250k range (fully finished) We plan to finish on the upper end, with stucco, recycled brick from the demolished garage, marble counters, hardwoods, and radiant heated floors.

Most properties in Nebraska are built for the seasonal conditions we go through meaning we typically all have heating, A/C, good insulation, basements (for severe weather), etc.