Your adjusted cost basis is the purchase price plus capitalized improvements minus depreciation. 

I've also assumed VA loans where little cash was used (seller had low/no equity).

It (2%) technically would be coming from the seller by reducing the 5% to 3% and then you get a closing cost credit for 2% at COE.

I had 5 houses with them that were terribly managed (placing bad tenants, extremely high rehab costs). 

What type of properties are these and what do you mean by it not being "cost-effective" for you?

A free seminar, a low cost workshop, and an expensive mentorship program4.

Since your dad is a contractor with access to affordable labor, the renovation costs could be lower than average.

I would greatly appreciate it.Thanks,SG There are lenders out there either with low LTV or high fees  pick your poison

(Lower interest rate, easier to qualify and lower costs.)

Eastmoor and whitehall are good too because of newer home ages after 1940 where you don't have knob and tube wiring and some of the other issues. don't be afraid to look at new construction or ground up new builds closer to downtown. rentals are overpriced in these areas but build costs are low and it can be a good strategy