About 1000sq ft)Monthly expenses including mortgage, taxes, insurance, hoa etc: $950Rents $1450/moSo it feels like a good deal but here's the kicker, it needs a new furnace/ac which is a combined unit that is outside.

What about homeowner's insurance?

Throw a post on Craigslist in sure you can get someone to do it for a decent price

It's a 3% tax rate on a purchase price of $125,000, the assumption that insurance is about $1000 for just the basic policy, and the annual HOA fee of $450.

You have to determine what your investing goals are to know how to proceed.

Both the mechanical and plumbing seem to have less left on the contract than what would be required to finish the work (for instance the HVAC guy has done everything but put in the new package unit outside which is about a 5k job, but only 3.5k is left on the contract) but I, nor the owner who has been very cooperative, have been able to get in touch with the electrician, and there is a good bit of work yet to do.When you say $ held in escrow post closing to cover leins, do you mean $ out of the seller's pocket/sales proceeds, or out of my pocket?

They'll also want to know if you can handle the carrying costs like interest, electric, water, sewer, garbage, house insurance covering construction, etc, etc, while you're doing the renovation.

The standard for a lender is 10% cash on cash going in and after a reserve for replacements (and insurance) that I don't see here.

Repayment would be the interest-onlyOption 2) If you were wanting to use the proceeds towards a down-payment of a rental house.

If your area doesn't license contractors I assume any legitimate company with the proper insurance to pull permits would be acceptable.