It’s a 4 unit property that will undergo about 2 months renovation.

The cap rate I have measured is about 5% and the cash return would be about 1.25% while I pay my mortgage off (The extra income will be going right towards the mortgage) and I imagine as the area undergoes more updates and new houses that the rental prices will continue to rise. 

Our tenants undergo a credit and criminal check. 

Many neighborhoods are also undergoing revitalization/gentrification which could boost your returns if you are lucky enough to experience that while holding for the long term.

With properties like this that could pose more risk, do you typically undergo a longer/more in depth due diligence period before closing?

If the sanitary conditions in your unit are such that it attracts pests of any kind, and it becomes necessary for us to undergo remediation in the building, you will be held financially responsible for reasonable costs thereof, paid as additional rent.I think you resolve this with the tenant by attempting to negotiate them paying, but if they push back you may just have to eat the cost as tuition since your lease is silent on the issue.

There are tons of nicely remodeled great looking flips just languishing on the market right now, undergoing price reduction after price reduction.

A “homeowner’s policy” generally doesn’t cover vacant properties undergoing a rehab.  

Near the university and downtownProperty C Quad- Asking 525,000Rents total- 3740Current taxes- 3192I have not gotten insurance estimates yetAll utilities are metered separately except water- each tenant pays $70 a month, This is in an area that is undergoing redevelopment and has many business moving into the area. 

I will need to add direct vent systems instead, but the living space will undergo a huge increase.