He'll still be renting - just from you instead of others, and at all the costs to you that you have enumerated.Your son doesn't "need" to buy a house.  

New deliveries are hard to get out of the ground because rents aren't high enough to support the projects at today's costs and interest rates. 

The issue is cost.

Renovation cost is roughly $30K.I guess what throws me off is that you say Cash invested: $60 

If you sell the property, a lot of the $107K cost will be eaten up in transaction cost.

Many other investors offer the same deal and it doesn't cost any upfront monies whatsoever.

Closing CostsMake sure you also budget for closing costs, which are a collection of fees and payments made to the various parties involved in your transaction.

And while yes, no one has the same pricing (combination of factors), I also continue to check on a regular basis our rankings and how we "present" on total costs per stay vs. our competitors.My gut says there is price creep and we might have a ways to go before the market really corrects.

Midwest has inflated over the past 5 years (as everywhere else), indexed to cost of new construction.

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