That’s around a 2% return on equity, which is low — especially when you factor in management fees, minimal rent growth potential, and limited reserves to cover big-ticket items.

When inspection was done, we used several items on there to negotiate it down another $10k to $345k.

Check for big-ticket items like roof, HVAC, and plumbing.

Due to item 1, adding an ADU can require years to start achieving any return (once the accumulated cash flow recovers the initial negative position).4) Adding an ADU is a slow process.

Look up with an internet search on the lifespan of the item to find what percent is 'used up' and multiply that by the cost of a new one.

The most important items to consider for approval is that you have very clean credit and the lender will also analyze the exact location of the property to consider how long they will take to resell.

I guess without knowing your personal financial situation if I had to make a decision it would be thus: if I could get close to REAL cash flow break even (this means counting an expense reserve for items that will have to be replaced in the future) I’d rent it out.  

He has so many great insights and actionable items within his book.

This inspection breaks the findings into 3 categories 1) not normal wear and tear which is fixed and charged to tenant.  2) normal wear and tear that will be fixed and paid for by LL 3) items that are normal wear and tear but will not be addressed at this time.  

These inspector items just added to my over budget.Enough rant on inspectors Different project and rant on permit process.