The occupants are not squatters per se.

It seems the NW is to expensive to get into unless there is 2 or 3 investors partnering up and the only place that is affordable is SE but I don't like the area.Would like some pointers or advise.Thanks!

Coast Guard HQ is already under construction and DHS starts soon.This is the largest active construction project in the US per some folks.However, this part of SE DC is thought by many to be the worst place in a city that has its hoods.We were thinking we just got in a little early, but the price was right, we are in all cash at about 65K and the carry is minimal given the potential upside.So we keep working on some final plans and were going to pull demo permits this fall and begin some work in the new year.Here is the kicker!

This person would NOT be subject to SE tax and would be taxed at the capital gains tax if the property is held longer than a year.

I definitely wouldn't say that you "need" an LLC per se, but there can be some big advantages.

@Ross TramplerIf you want an owner to allow you to lease with option, see houses for sale and for rent on Craigslist in SE NH and NE Mass, it is expensive as I grew up in Boston, Try to get market rent and a new appraisal and a property inspection to find defects.

I almost have 1-2 student, though I am not doing student housing per se...

You could do MIRR for reference, but this isn't what you're going after here.Cap Rate is not a metric of financial return, per-se.

Watched the RBC Heritage Tournament, and spent some time enjoying the island.Question for you--If you were to purchase a vacation rental in the SE (Hilton Head, Savannah, Charleston, Myrtle Beach, Jekyl Island..) where would you consider?

and have a few questions related to calculating deals.I'm in SE Florida (Palm Beach County) so rental activity is pretty high but seems montly rentals on properties are a little low.Q1: Is there a general rule of thumb anyone uses for calculating rehab costs, (paint, carpet, etc, )?