This just reduces your cash flow every month...but you're not coming out of pocket...and, the actual costs to the deal is insignificant.Example:  Cost to replace roof = $5000Option #1:  Replace in 5 years, when it starts leaking.Cost to you for roof:  $5000Cost to replace/repair interior damage:  $3000 (floor, paint, etc...)Interest on funds: $1800Total cost out of pocket:  $9800Cash flow for 5 years (before roof repair):  $5k/yr = $25,000Adjusted Cash flow for 5 years (after roof repair): $5k/yr = $15,200Option #2: Replace now, before it starts leaking.Cost to you for roof: included in purchaseCost to replace/repair interior damage: $0 Added O & I to purchase loan:  $24/month; $288/yearTotal cost out of pocket: $0Total cost added to loan over 5 years:  $1440Cash flow for 5 years (before roof repair): $5k/yr = $25,000Adjusted Cash flow for 5 years (after roof repair): $5k/yr = $23,560

I see most people mention laminate floors in replace of carpet, fresh interior paint, bathroom vanity's, and updating the kitchen.  

If your rehab is active, even a new build, or just an interior paint job - what is going on? 

As for the interior, your Inspector should be able to tell you if there are any issues with the home.

I have since learned it is safe to assume it needs renovating when listing has no interior photos.

I did the interior painting myself.

The house was originally buildt circa 1930 and rebuilt 15 years ago after a fire destroyed the interior and exterior.

Any balances due, tenants with late payments still dueIdentify any existing evictions in progressCertificate of Occupancy from the City of LA9a Property Report Natural Hazards Disclosure Statement Copies of all current insurance policies and insurance company contact infoLoss run from the insurance carrier (my insurance broker requires this from seller)Copies of ad valorem tax statements covering the Property for the last twelve (12) months, if anyCopies of electric bills for last 12 monthsCopies of gas bills for last 12 monthsCopies of water and sewer bill for the last 12 monthsCopies of trash bills for the last 12 monthsCopies of any vendor service contracts (common ones include landscaping, interior cleaning, laundry, fire alarm monitoring, and pest control) Copies of any environmental studies affecting the property, if any.A list of anything that will not convey with property (common items include laundry machines and appliances owned by seller)Copy of current management agreementCopies of all existing surveys of the Property, if any.Copies of all warranties for appliances, equipment, utilities, roof, paving, pool, etc., if any.Copies of the last three years’ profit and loss statementsList of all capital expenditures in the last 3 yearsDate of systems updates, if known (plumbing, electric, roof, HVAC) Preliminary Title ReportCopies of the most recent title insurance policies, if any.

The interior is nice enough but the exterior needs a lot of love and care.

This home is super clean, with an almost completely new interior.