how are you getting an accurate representation to the costs to repair the property?

Focusing on generational wealth is probably not your best prospect.A better focus might be running the property in a professional manner, maintaining the asset value of the property through appropriate repairs and upgrades , learning some best practices for management , and having enough cash reserves to keep the property from being seized by the bank in lean times .

That has less to do with crime (in the area that I live I don't see it as a big issue) and more to do with taxes and tenant-friendly laws.For any area that is higher crime, you should budget for higher vacancy (and significantly higher vacancy if you don't set tight screening standards and have to evict a tenant) and higher repairs and maintenance.Good luck!

There is a retaining wall that is bowing, which I had an estimate done during the purchase contract which the seller dropped the sales price for that repair.  

Converting your single-family home into a rental property involves several considerations to protect yourself and ensure smooth operations: Establish an LLC:Liability Protection: Holding the rental property in an LLC can protect your personal assets from potential lawsuits related to the property.Tax Benefits: An LLC can offer tax advantages, such as pass-through taxation, where rental income is taxed at your individual income tax rate.Insurance:Landlord Insurance: Ensures coverage for property damage, liability claims, and loss of rental income.Umbrella Policy: Provides additional liability coverage beyond your landlord insurance, offering extra protection.Deductions:Mortgage Interest and Property Taxes: Continue to deduct these expenses.Depreciation: Depreciate the cost of the property over 27.5 years, excluding the land value.Maintenance and Repairs: Deduct costs related to maintaining the property.Property Management Fees: Deduct fees paid to the property manager.Filing Taxes:Schedule E: Report rental income and expenses on Schedule E of your tax return.Separate Accounts: Maintain separate bank accounts for rental income and expenses to simplify bookkeeping.Lease Agreement:Solid Lease Terms: Ensure your lease agreement is thorough, covering rent amount, due date, late fees, maintenance responsibilities, and eviction terms.Legal Review: Have the lease agreement reviewed by a real estate attorney to ensure compliance with local laws.Tenant Screening:Background Checks: Perform credit, criminal, and eviction history checks on prospective tenants.References: Contact previous landlords and employers for references.Property Management:Regular Inspections: Schedule regular property inspections to ensure it's being maintained properly.Maintenance Fund: Set aside a reserve fund for unexpected repairs and maintenance.Moving Out of State:Communication: Maintain open communication with your property manager.

Based on the images, it looks like there are a handful of repairs needed.

I then **Rehabbed** it, making necessary repairs and improvements to increase its value.

I have been digging through the guidance and am wondering if anyone has ever taken advantage of the following clause regarding 203k improvement types from the HUD SFH Handbook 4000.1, pg 374:- "reconstructing a Structure that has been or will be demolished, provided the complete existing foundation system is not affected and will still be used;"- "repairing, reconstructing or elevating an existing foundation where the Structure will not be demolished;"Guidance link: https://www.hud.gov/sites/dfiles/OCHCO/documents/4000.1hsgh.pdfHas anyone ever built a new home on top of an existing foundation using a 203k loan?

Repairs needed are ~$60,000.

Pros:Potential for Bargains: Auctions can offer properties at lower prices than traditional listings.Speed: The auction process is usually quicker than traditional sales, with a defined timeline for closing.Transparency: The bidding process is transparent, and you can see competing bids in real-time.Cons:As-Is Condition: Properties are often sold "as-is," meaning no repairs or warranties.Limited Inspection: There may be limited opportunities to inspect the property before bidding.Financing Challenges: Securing financing for auction properties can be more challenging and may require quick approval.Auction Fees: Be aware of any additional fees, such as a buyer's premium, that could affect the total cost.I hope this helps you out!