Purchase price: $250,000 Cash invested: $14,000 I purchased and managed a rental property in Chicago, focusing on strategic improvements and tenant satisfaction to increase both its value and profitability.

Since you estimate a resale value of $200-215K and renovation costs of $60-70K (although you said that's on the higher end), your margin is tight, especially considering closing costs, realtor fees, and unexpected expenses.

What do you mean "at cost?"

Asking price, cost of rehab (plus time to complete), ARV, and rent once rehab is complete.Asking price $50k.

@Lexi Blocksom suggest you discuss in detail with @Russell BrazilYou've made a mistake thousands of naive investors have made - expecting Class A results from Class C & D properties:( In general, you'd want to compare what you can sell the property for now versus what it would cost to update it and what you could then sell it for.

It’ll cover all your rehab costs.

Recently I got a huge increase also.

The reason people hesitate to pursue ground-up construction here is because it's costly, unless you're building a two-family home where you can live in one unit and rent out the other.

The long-term moves are to get a concession to buy down the rate for good (not a 2-1 or 3-1 buy down), it's a smaller number (i.e. .25% or .5% decrease on the rate), and getting their full closing costs covered is money out of their pocket today they'll be saving that could be huge to give the buyer more money for repairs and/or furniture along with just life expenses. 

There are many reasons but near the top of the list is their cost versus the value add.