- The relinquished property sold at $1.4M- The replacement property purchased at $1.55M- Sale & purchase have been timed so that close of escrow on sale of relinquished will be followed shortly buy a purchase, which we are working on now.- The unsecured debt was given as a gift so there is no note, mortgage, or lien on my property. 

The work included roof replacement, fully insulating the house, fixing the drywall, digging drainage ditches to relieve the hydraulic pressure on the foundation, and jacking up the house to rebuild the foundation.

He claims that is none of my business since the city owns it.While it is true the city does control the first 25 ft of property I am the one who will have to replace and repair any lawn damage, and i would be responsible to keep it mowed. 

We replaced hot water tank, walls, doors, vanities, fixtures, etc... 1b) Do I need to break down my pre-market expenses into the Schedule E categories or can I leave them in bulk under "supplies" and "services" like I currently have them?

.$25k in materials and laborMonthly holding costs: $557(int payments, taxes, utilities, insurance)House info as purchased:House built in 1971 - Solid B neighborhood - Great Schools2081 sq ft4 Bed, 2.5 BathNew RoofNew WindowsNew HVACVinyl SidingWork to be performed:New cabinets and counter topsLaminate downstairs and carpet upstairsNew vanitiesNew light and plumbing fixtures(tubs staying)New water heater Paneling removed from den and replaced with sheetrockWindow removed from eat in kitchen and replaced with slider to access the back yardSmall deck built off of sliderAnd obviously paint throughout.We will probably price it under market value and hope to sell it quickly(30-60 days) at $125k which would give us a profit(after commissions, closing costs, and carrying costs) of $22k-$23k.  

Can rehab costs be replaced with "per sqft" building costs, for example?

Although this seller reports all of the tenants pay their rents on time ( and I do believe him) we screen our tenants differently and I tend to be more select so I'm not sure I'd like him to be the one screening and replacing tenants.  

I came back to the west coast and tried as hard as I could to get a pool together to buy them.. but capital as you know then was tough to raise.. well the big builders bought them and they are doing fantastic will lots that cost them 90% less than replacement costs..

If this a buy/hold, you may wish to consider eliminating the inevitable issues that arise with cast iron lines and replace immediately after foundation repairs.

You state that you are having problem low-income renters so let's use the safe 50% rule, expenses are going to be higher, higher turn over, more repairs, more carpet replacements, more legal fees for 5-day notices, higher headache.