Not that there is anything wrong with it, but the tenants are basically getting ripped off and end up paying $2,000 for a $400 washer when all is said and done.

Washer everything down with TSP, primed with Kitlz, and repainted.

I did a custom tile shower, flooring and sink.Kitchen was complete gut job (10x10) and new appliances (including washer and dryer ), rewiring and plumbing.

@Jay Hinrichs casually mentions golden nuggets like placing an extra washer/dryer in your master closet, or painting your copper pipes white so they look like plastic to fool the thieves. 

New kitchen, bathrooms, all new paint, drywall basement ceiling, new appliances including washer and dryer.

Here's an example of a Duplex I'm looking to close on next week and what I can expect to put aside in expenses and also take in:2bd/1ba & 1bd/ba Duplex - Purchase Price $41,500Income 1 $600, Income 2 $475,  Vacancy -$90, TOTAL INCOME = $985Mortgage $220, Property Taxes $66, Management (6%) $65, Insurance $55, Water $60 TOTAL CORE EXPENSES = $466/moSnow Plow $21 ($250/yr), Lawn Care $0, Turn Over Cleaning $25 ($300/yr), Visits/Phone Calls $60/mo TOTAL MAINTENANCE = $106/moOvens $400 x 2 / 8 yrs = $100/yr, Fridge $500 x 2 / 8 yrs = $125/yr, Dishwashers $0, A/C $0, Washer/Dryer $0, Water Heater $400 x 2 / 10 yrs = $80/yr, Furnace x 2 / 15 yrs = $267/yr, Roof $8,000 x 1  / 20 yrs = $400/yr, Carpet $2 x 600sf / 6 yrs = $200/yr, Yearly Total = $1,172/yr TOTAL REPLACEMENT EXPENSES = $98/moTotal Avg Monthly Income = $985, Total Ave Monthly Expense = $670, Cash Flow = $315,  Down Payment = $8,300, ROI = 45%!

That since it is a 2-unit property ( although, the county tax records have always and still do.... show it as a single family property with a de-tached workshop )The 2nd " unit " was originally a workshop when the house was built ( back in 1945 ), but some 20 years ago, someone put a bathroom, kitchen, bedroom and washer and dryer hookups in it I don't understand why he is saying that it won't go FHA 203K, when I have seen houses in worse/ more distressed shape than the property I am trying to buy.The house does need about $25,000 in repairs ( New AC unit, roof, painted inside and out, all new flooring, appliances 0It is a cabin type house, so the wires are stapled to the wall ..... to get by this and get it up to code, can't you just wrap it in conduit ?

When my new washer and dryer were delivered, they would not set up the dryer because the dryer vent was plastic and not metal.The house had a completely finished basement with drywall and carpet and a wet bar.

See the 3 things after the financialsPurchase price: $390,000I can get financing at 25% down, 5.5% amortized 25 yearsPer seller:90% occupancy or higher since they owned in 20028 - 1 bed/1 bath at $550 per month6 - 2 bed/1 bath at $650 per month*One of the 1 bed/1 bath has an onsite manager/handyman living for free so there is no property mgmt costs in the expenses*Owner pays water and trash2017: Total Operating Income: $79,989.50Expenses:- Lawn Maintenance: $1,800- Water: $6,816- Trash Collection: $1,740- Pest Control: $820- Supplies: $4,280- Repairs: $9,852- Insurance: $4,153- Property Taxes: $10,515Total Expenses: $39,976.82NOI: $40,012.682016:Total Operating Income: $83,154Expenses:- Lawn Maintenance: $1,800- Water: $5,820- Trash Collection: $1,680- Pest Control: $604- Supplies: $6,639- Repairs: $9,910- Insurance: $4,153- Property Taxes: $10,521Total Expenses: $41,127NOI: $42,027So if I’m all in at $115k (down payment + closing costs), assuming 40k NOI, i’m looking at 16.4% cash on cash with one unit vacant at current rents (without anything set aside for capex however)WHAT WORRIES ME:1) No washer/dryer connections AND no laundry facility on site (would have to build a new building and run new plumbing to add one).

As is current owner had rents for 550 and similar properties rent for 650 to 700 with laminate floors and minimal paint, the only difference is they have washer/dryer.