These properties are currently being rented for a great amount with great cash flow.Most of the time, these properties are not in the worst condition, but they are not new either (I think about $10-20K in repairs needed) or even properties that have great tenants paying great rent in them.Now, if I analyze the MAO with the standard calculation (ARV * 0.7 - repairs - fee), it won't make sense for the seller, and he won't sell it (found out the hard way haha).What do you guys do in that situation?

Thanks,Karl @Karl Hudson   How much market value do you expect these repairs to add to the property? 

Since I like wood working, and have made several cabinet boxes for other rentals that needed repair to match existing cabinets, I can always cut new sides & bottoms if/when the presswood starts to deteriorate, and reuse the frames & doors. 

The landlord gets a confirmation message, and if the issue is confirmed, a message is sent to the repair technician.

What are you guys commonly seeing get dinged for repairs or updates?

@Shawn D AugustiBy start up costs if you mean repairs or improvements done to the property before it's placed into service, those expenses are added to your cost basis and depreciated.

The Cosigner Agreement states they are financially responsible, all communication will take place through the actual occupants, I don't deal with helicopter parents, they are responsible for payment of rent as well as any cleaning/repairs after termination, etc.Don't forget it's not easy to sue a cosigner if they live in another county.  

Takeaway is having at least 1 medium term guest will yes have lower rent potential but less headache and helps stabilize income.Gross Earnings: $2,200Expenses: $75 supplies (we clean ourselves, takes 10 minutes, and it's right upstairs no biggie)PITI: $2,700We paid $800 including utilities and any little repairs needed to live here.When we move out, we expect to cashflow around $500 a month conservatively.

It is also a low-risk way to learn all the principles of real estate investing with very limited risk, gain experience with evaluating, buying, repairing, renting and managing a property.

Additionally, if their capex budget was only forecast for 5 yr hold, and they are now anticipating 10 yrs, they may be seeing roofs, exterior repaints, other exterior repairs (stairways, railings, parking lots) that they assumed they wouldn't need to address, but now need to.Things to look for: positive DSCR TODAY, not on pro forma numbers.