The ex-wife has talked with the bank about doing a deed in lieu when the time comes, but i don't think that is allowed with deed in lieus because i think that only works as your primary residence as far as I understand and even if it did i think the amount would be taxed as income so she'd have an unexpected tax bill.The house is under water.  

I agree with you that I am almost never on budget, mostly over, but I try to bring the mouse in a condition where all components have at least 10-20 years of life left (which means replacing a lot of course).One thing that you do and I think I will change is to not finish the basements.

Beyond repair costs, make sure you're comfortable/conservative with your target rents and vacancy rates, those are the biggest components (to me) that can make or break things.

Mark - being a hud broker, do you often have many unexpected issue come up on inspections that people ask hud to repair or credit? 

I began showing it and got it leased starting the second week of January.My point is, my seriously ill tenant who was near death at one point did not use his unexpected hospitalization to avoid his responsibility for paying his rent. 

@Lane Mccracklin I plan to wholesale until I have enough capital to endure a flip in case there are unexpected cost, which from what I hear there usually are.

Recently my preference has shifted toward small multi-unit residential and commercial properties with a residential component.

Knowing and hearing all the horror stories I realize there are alway way more expenses than you ever expect, so therefore we plan to collect $80k for every property, so we would haven about $30-40k left over for safety margin in which we can use for initial remodeling if needed, and any unexpected expenses that may come up.

If it doesn't there has to be tremendous upside with a value add component.

This necessitates additional (expensive) tear off costs, sistered rafters & all new sheeting.Then there is the possibility that the replacement of the original clay pipe sewer lines will be another unexpected cost along with the need to install sump pumps that must pump to the new french drain you created out back, rather than into the sewer.