A 3 bed house is always a higher value than a 2...and would rent higher too, in most areas.  

If it is free and clear look at an installment sale, give her full price with payments so you can net a positive cash flow, and the note survives her death so she can pass the note (cashflow, like an annuity)  onto her heirs instead of a property with headaches.

I think for a fourplex 25-30% is more reasonable, and from the expense history we have 30% is more accurate.Our property rent is also $100 more on average then the surrounding properties, we checked.I think what hurts us is that recently some of those properties were short sold $70K below market value also because of death in family or other financial troubles.

$150,000 (asking price)Multifamily Duplex2 bed, 2 bath ea.

Its increasing in price every year (a friend that lives there said every 6 months it seems like a different place) and people that don't want to pay 1200 bucks for a 1 bed studio in Austin are moving to.

I would bring a 4 bed down to a 3, but I wouldn't bring a 3 down to a 2.

The house is in KCK and I got the ARV by looking at comps that have sold with similar bed/bath/sq ft.

How many beds and units and monthly rent.

At the time I didn't know much about them since we had just purchased the property.After they moved out, we discovered that there was a severe infestation of bed bugs and cockroaches and the carpets were soaked through with dog urine, among other things.

Here are the numbers and estimates so far: Property Type: Two-family, side by side, 3 bed / 1 bath each (vacant)Location: Honesdale, PA Ask Price: $77,000Buy Price: $70,000Closing Costs: $3,341.45Estimated renovation costs: $25,000ARV: $120,000Taxes: $1,840Water: $1,200Sewer: $1,140Maintenance: $500Insurance: $1,611Miscellaneous: $600Rent: $750 / $900 (tenants pay for gas & electric)My plan is to put in new bathrooms & kitchens and clean up the rest of the areas.