I want to focus on out dated homes, remodeling them and bringing them to conform with the already updated homes in the neighborhood.

Maybe 1200/mth for a 12-month lease, 1100/mth for a 2-year, or 1250/mth and an improvement budget to upgrade/replacement a few items that are outdated. 

That way you can get more opinions.Also look up local BP members here and get their thoughts as well.Website such as Zillow and Trulia can help you get started, but can be veru misleading or outdated as well.Hope that helps!

Hey @Kevin Fox, my holding cost consist of:Interest paid during rehab, utilities, and I see I need to get information on insurance and taxes.I only used the two homes that were outdated because my agent sent me those 2 as comps.

The floor plan is just weird and outdated. 

(but looks like you would for first month)...so back to your situation, which is not clean, but check your state rules and verify without the signed lease, you reverted to the month to month, so I would really document and communicate the end of June move out date (like verbal plus a follow up more formal looking letter) and prepare for the move out then and the painters, etc to come in..

In addition to the price ask how many bedrooms, bathrooms, basement, attic, pool, deck, size, rent (if it is multifamily), location (how close to beach, transportation, job), updated or outdated appliances or cabinets etc the house has. 

Was the material outdated?

The 70% of ARV adage that has been popular for the last two decades has really become outdated for a number of different reasons I've talked about on my blog before.  

If you can find something that is just outdated, you could use the FHA or VA, but you're probably not going to get much of a deal if it's just an outdated home.