They find and fix the deals and we sign the checks.The idea was amazing for people whose time is completely eaten up by our employers, looking for a way to create retirement with rental income.However, that is not at all what he did.In reality, he found the crappiest oldest homes ( more like death traps), that no other knowledgeable investor would touch, and upsold them to us for $20-50K more than they were worth, lied about the numbers, and charged us for repairs he never did.

When you look at any type of sales position first thing they will tell you is “know your product”If you do not know the home - meaning what is it worth as is, how much does it need in repairs and what is the exit value - I can’t see how someone will be successfulI also see people take mls properties and get them under agreement to wholesale and maybe hit a deal here or there / but my guess for these people is similar to those that start dropshipping companies and everything else they tell you can be done with no moneyIt never gets off the ground and if they spent that time getting another job they would have a lot more money .

Were any of the repairs something that should have been deducted from the previous tenants security deposit? 

Mine was like broken SF with multiple building and doors, so it's like a flip, have to spend quite big to repair the homes.

Thank you for the response, the renovations are minimal, (paint, drywall tape repair, landscaping).

Please feel free to give feedback on my cost-per-square-foot range:Cosmetic fix: basic carpet, paint, flooring, new hardware, clean up, repair a few things project.

We come down in the winter and a couple times throughout the year and do repairs, upgrades etc and it's nice in the winter, but if I needed this place to make any money I'd be hurting.

My current primary ( scenario 1) Keep the primary for the life of the loan ( current rate is 4.5 so i dont see my self refinancing anytime soon)current home value 1,150,000Loan amount 935,000appreciation estimate 5% per year after a 28 year hold and the house is paid off I would have a house worth 4,312,000$my current mortgage is 6125$ ( piti) included My second option( scenario 2) Sell the house, walk away with $150 ,000 ish in hand and put that into a low cost index fund Rent a house elsewhere for about 3000$ ish and take the extra 3000$ im saving everymonths from not having to pay my mortgage and puting that money in the index fund as well I ran the numbers on both of these scenarios and doing what I mentioned above would break even at about 28 years meaning my stock account would be worth 4.3 million just like my house would , but the only is that holding a house for 28 year would mean 28 years of property taxes, loan interest ,home insurance and repairs etc whick I calculated to be about 1,200,000$ at minimum which raised my eyebrows to say the least Also i understand that each of these options ( stock market vs real estate ) will have there tax consequences ( long term capital gains) so any thoughts on that would be appreciated as well.  

6% Cap => $54k/0.06 => $900kThen I'd bake in 15% buffer for repairs => $900k*.85 = $765k

-NOI (past 2-years if available)-Vacancy %-Repairs needed-Pro forma-CAP Rate (something around 4-5% is what you recommend?)