In the RE space, that's typically flipping & wholesaling.

That's a typical scenario and could cost you $10,000 - $15,000 so that would be a good starting point for your reserve.But there's more!

The asking price is under $125k and like mentioned earlier, the renovations would be 50% so there are major repairs (not move-in ready). 

@Thomas FarrellRecommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location to invest in.Property Class will typically dictate the Class of tenant you get, which greatly IMPACTS rental income stability and property maintenance/damage by tenants.If you apply Class A assumptions to a Class B or C purchase, your expectations won’t be met and it may be a financial disaster.If you buy/renovate a property in Class D area to Class A standards, what quality of tenant will you get?

There is a 'comp' listed for $200,000, but it was sold as-is and needed great repair.

Plus, you have to turn the unit over- paint, carpet, etc repairs?

Most of our Members are baffled, typically saying: "How could they allow one of THEIR Tenants to be even ONE month behind?"

- A 0% down, seller financed deal, typically equates to little to negative cashflow!

The only difference is the seller remains on title until we have enough equity to refinance or sell.3: Typically we don’t agree to balloons.

As an example I was looking at a multi unit, smaller building and within 90 seconds of viewing the proforma I saw the maintenance/repair figures were "low".