And you need to keep detailed records of all repairs and improvements.

The best deal I can find today is one that you buy cash, invest a rehab and when you pull out 75% of your ARV you leave maybe a small amount of money in the deal and you break even (BEFORE DISCOUNTING FOR VACANCY, REPAIRS, etc) Yes that means you leave like 10-25k in the deal and your payment becomes $3000/m and your rent is $3000 a month or slightly less.This is for my local market and for Class B or higher RE. 

Single family house, which required smaller down-payment and little cosmetic repairs.

Okay, let's allocate $1500-$2,000 for this repair that will need to be done.  

Mortgage rates at 7% 2. 25% down3. 10% of current rents budgeted for capex, monthly repairs and maintenance and property management fees. 

It will need approximately 20k in repairs and have a ARV of 80 to 120k.

In a text book case you'd buy a property for half of its ARV (after repair value) and then spend 25% of ARV on rehab and generate 25% equity.

I would definitely factor in some substantial capex/ maintenance and repair costs which could lower your returns.  

., repairs, management, communication with the seller).Exit strategies in case things don’t go as planned.When you do find the right partner make sure to create a joint venture agreement that outlines all of this clearly.

Adding the rehab money is standard if the property needs repairs.