Rent Per Unit $‎650 $‎700 Other Income $‎750 $‎800 Less Vacancy $‎(3,120) $‎(3,360) Operating Expenses $‎18,790 $‎19,809 Repairs $‎4,000 $‎4,200 Capital Expenses $‎2,000 $‎2,100 Landscaping $‎1,500 $‎1,575 Utilities Vacant Units $‎288 $‎302 Property Taxes $‎6,000 $‎6,300 Insurance $‎1,500 $‎1,575 Management $‎3,002 $‎3,232 Other $‎500 $‎525 Net Operating Income $‎41,241 $‎44,831 Financing Expenses $‎22,224 $‎22,224 Cashflow $‎19,017 $‎22,607 Down Payment $‎21,000 $‎21,000 Cash on Cash Return 90.55% 107.65% Keep in mind, this return doesn't even include the principle pay down on the loans.

First you need to learn to separate the following:Maintenance: usually things related to wear & tear or tenant damage.Repairs: usually broken items like doors & windows, caused by tenant or nature.Capital Improvements: usually expensive things that wear out: hot water tanks, furnaces, roofs, etc.The seller is correct that Repairs & Capital Improvement items should not be a factor for awhile (ALWAYS get your own inspection to confirm).

Finding an agent, finding contractors, overseeing repairs, finding a property manager, finding tenants, etc.

@Derek Buehner Repairs made to your primary residence while living there generally aren’t tax-deductible.

A roof on the 600K property will cost more than on the 300K property, but you have more roofs to repair on the multiple 300K properties.

So I’d like my property to be close because until I grow I will be doing any repairs and updating.

As for repairs on the purchase of a home prior to auction there are some professionals utilized by the professionals for costs to repair the home in best and worst case scenarios.

Out-of-pocket capital improvements and repairs anticipated during the first year12. 

This was a few years ago, but at that time as I recall they were looking to do more long-term property leases over owning properties and doing pretty landlord friendly leases where they would do repairs and even pay property taxes. 

Start by thoroughly evaluating leads for profitability, calculating ARV (After Repair Value) based on comparable properties sold in the area within the past six months.