House had the interior repainted and recarpeted.Listing Price: $290,000Offer accepted at: $290,000 + $5k credit + $2,600 loan creditARV: UnknownHolding cost: Unknown how long repairs will take.3% closing cost - $7,600 credit = $1,100Gross Income: $2,800 - 5% vacancy = $2,660FHA @ 3.5% down ($10,150), 3.5% interest rate + $196 MIP = $1,429 PI+MIP.Rehab (Dry rot removal, 2 piers in foundation need replacement and cracks in foundation, add kitchen to studio): $25,000 - I’m still not 100% sure of this cost.Expenses: $280 (10% CapEx + Maintenance) + $302 for property tax + $260 (water, sewer, garbage) + $50 for pest control every other month + $100 house insurance = $992Cash flow = $239/moCash @ closing ($25k + $10,150 + $1,100) = $36,250Cash on cash ROI = 7.91%Your opinions are welcome about my first home purchase.

They wanted money to repaint the entire interior.

The property was cheap and 100% occupied, but the problems with the math is when a tenant moves out of a unit in California, I collect $1800 per month for rent and the I can re-paint, install carpets and I will still have a little cash in my pocket.

Repair the plaster with drywall and repaint and retextureIn terms of systems, I’d focus on finding and creating a Rolodex of contractors and handymen who you can call onto for affordable rates who can fix issues like these as they come up.

You already did the big things.Wash walls, repaint, wash ceiling, repaint, look into HVAC ducts, clean filter and ducts by air intake and outlets by where he wall smoke was heaviest. 

My offer was accepted on an REO, and there was a strong smell in the house before--then the bank repainted the interior, probably to cover up the smell.

Repainting your property inside or out, fixing gutters or floors, fixing leaks, plastering, and replacing broken windows are examples of repairs.And continues withImprovements.

And with design colors usually used in bathrooms, touching ups often end up in re-painting the whole room for consistent look. + Doors & trims:    - Trims & baseboards are installed then get sprayed after hard floors.  

Downstairs vacant, being repainted and light cosmetic rehab currently. 

But if we were able to look at them 20 years from now, all with a new roof, a couple of re-carpetings, re-paintings, replaced HVAC, etc...., and a few months of lost rent due to vacancy, I am sure it will be very close to 50%.Nobody argued MORE against the 50% guideline than me when I first joined Bigger Pockets, I thought it was way too high.