Check your roofs to make sure they are in good shape, the first picture you showed is the gable end of the house with 2x4 fly rafters holding your fascia, the plywood you see is the sheathing for the roof. the paint peeling and mildew would not be caused by something inside the house, but something to do with the temperature and the roof, make sure your roof is ventilated, it appears there are no vents for this roof, 2nd picture shows your soffit with the roof rafters and next to the house is closed up. drill a hole in between each rafter the size of a round vent ( 2 - 3" ) and install round metal vents. at the ridge of the roof, remove the ridge cap, install a ridge vent and recap.

It is a good community to network and learn about all aspects of real-estate investing.

I have years of experience in working in different aspects of the real estate industry but am looking to enter the realm of investing for the first time.

RE is complex and the economics/financing is but one aspect. 

Hey Everyone - I am interested in all of the aspects of real estate investing and am specifically focusing on the northern Colorado market (Fort Collins, Boulder, and Denver). 

I am buying a duplex, I negotiated the price of a new roof in my deal.

Still, current projected rent is $3,200/month.Current owner (in keeping with the deferred maintenance theme) has very few financial records but does prove up the following actual numbers:-Property taxes, $1,900/year-Insurance, $2,320/year-Owner-paid utilities, $3,429/yearEstimated:-10% vacancy-10% management-15% for maintenance/repairs, and -Reserving $700/month for CAPEXBOTTOM LINE is $34,560 net rental income less $24,700 expenses = $9,900 NOI.Offered $95,000 with $10,000 reimbursed at closing for immediate CAPEX (roof and A/C units).  20% down, loan on balance ($76k) at 6% for 30 years.Cap rate with $400/month rents is 10.1%, cash ROI is 20.3%, and annual cash flow is $4,400. 

Regarding the rate on the loan, my wife has employee pricing since she works at the bank, I will most likely use a pre discount rate in my calculations though, just to make sure the deal is attractive on all aspects. 

You are very smart to be looking into that aspect of the strategy before purchasing, believe it or not a lot of people overlook that.When we started with this strategy here in CT we started by calling upwards of 40-50 banks throughout the state to see if we could find a lender that was open minded enough to cash out refinance an investment property within 6 months.

Examples of similararchitectural details include, but are not limited to, windows, doors, roof style, cornice detailing, vents, and dormers.