The theory is that the better assets you buy the better class of people your property will attract and thus you portfolio will average fewer one off situations.You can't judge the validity of the investment based on 1 property's performance over a 4 month period.  

One way or another, they are building their net worth.Building net worth is how you may possibly retire with fewer worries.

You can use a rule of thumb number like $100/unit/month but I think that's kind of dangerous.

Some houses have fewer windows broken than ones that have glass.

In my experience however, sellers are motivated to delay sales if they think they can pay fewer taxes by booking the income the following year. 

As I work in the backyard I find glass, sharp metal, and other garbage that could be dangerous if stepped on.

If rent to sales is getting into the 10 to 12% ratio that is starting to enter the danger zone.

My other suggestion is: don't Offer any more than that floor value, because otherwise you'd be in danger of letting emotional attachment interfere with sound business sense.The problem as I see it is that giving it a total rehab that aims to keep its character may well cost MORE than a new best-use build.

New development is still an 'opportunity', but there are fewer and fewer bigger fools available in markets that regulate landlords so excessively as it is.What I would be more interested in is how the 18-hour cities compare.

We have found that when clients would get the initial report done once the home was finished we would find a lot of items so if we can address them sooner then our contractors will have fewer items to do later with fewer items needing attention.