That way you won't have to concern yourself with repairs or evictions and things like that so you can focus on your classes.

Calculate the After Repair Value (ARV), or the expected market value following repairs, and estimate the expenditures associated with those improvements.

Someone will need to be handling inquiries, monitoring rates, guest issues that arise, marketing, repairs, maintenance, and housekeeping. 

Quote from @Daniel Bergless: Hey Hadar,Im a local agent here in Pittsburgh, and the firm that I work with focuses on distressed properties for investors, and from the numbers we have seen most of the opportunities we sell are typically 75% of the local ARV minus any repairs.

I don't know what they put in as far as repairs, though.

I think $2500 is quite fair if it's a two-bedroom home in questionable repair, which it may well be.

You now know your cash flow and what you can take out.Investors' problems sometimes include not budgeting correctly for repairs and maintenance and not factoring in a set amount that they will be contributing to their reserve account for CapEx (if you have CapEx repairs coming up sooner than later, put away more money into reserves now).To summarize, factor in all expenses and your monthly deposit into your reserve account before calculating your monthly cash flow.

I want to start searching for properties to make offers, but I need to know how to estimate repair costs.

He informed me that the auction would happen in 10 days, so he needs to sell right away.ARV: 2.5M - 2.6M Repair estimate: 180kschool zone: 9/10 rating a very popular school zone for the area.he owes 700k in areers!

If you go this direction, all your money saved up went to a downpayment and you have no cash reserves for repairs, vacancies, and capital expenses.