It is normal for a project manager to receive 10% of the rehab project cost as a rate of pay.

For example if it cost 2,000 a month to rent a similar home and you offer a crappy 2,000 CFK to move today and leave in broom swept condition a smart tenant wouldn't take that.After cleaning up,paying a moving truck,and putting deposits down they are netting much less than the 2,000.They can instead wait 3 months before you get them out,save 6,000 in rent,and leave all the junk behind and just take the items they need.They come out way ahead that way.If they have lived there for awhile the clean up will cost a lot of money with the trash bins and dumpsters.If however the tenant is moving into a parents or friends house or a much smaller unit and do not have much to clean up or have a job transfer they might move today.

Keep in mind that if you're not doing the renovations yourself, it really doesn't matter how much the rehab is going to cost, as the cost shouldn't impact how hard you have to work.

I usually do some of the work myself but I always figure the cost as I am paying a contractor.

Going by the good 'ole 70% of ARV minus repairs adage, I want to know where the fixed costs come in with your acquisition cost - as my math is coming in lower than $215,000.Thanks for the educational insight.

From my understanding replacing the insulation in his apartment would cost a lot of money.  

It may cost a couple of bucks, but it's worth it to set your business up the right way.

If I obtained all the property this would cost a little over $7,000 in just TX entities over time. 

I have this uncontrollable desire to keep liquid cash available, even if it will cost a little bit.

If you estimate vacancies at 5% and property management at 10% of net rents then you have a cost of $1,377 per year for net operating costs of $3,567.I am estimating your initial cost as $7,400 +$48,600 + about $5,000 for repairs or a total of $61,000.