@Nathan GuyetteThe beauty of real estate is that you can depreciate the property minus the land over 27.5 years, depending on how much you are collecting in rent, you will likely pay little to no taxes after deducting real estate taxes, mortgage interest, deprecation and any repair and expenses.

Through my due diligence I discovered repairs needed and have agreed upon a credit from Seller in the amount of $25,000.

I should also note that she would be willing to give me some time to make the repairs before making a mortgage payment to her....like 60-120 days.

I tend to be more conservative rather than aggressive overall and would prefer to pay cash for updates to the other apts when I fix them up but I have the opportunity to have 3 of the 4 units fixed up within 6 months of buying it if I get a HELOC/personal loan etc for the repairs. 

he said he has 25,000 Into buying the home in 2008 and has made his money back multiple times over since 2008 as a rental but is tired of renters and fixing issues every 6 months or 3 months or year you know the story....so his offer to me was here you take the house I will even throw in 20,000.00 as repairs and updates are needed you ( being me ) do the work and when you are done we have it kisted...he then said he only wants his investment 45,000.00 back at the sale and anything over 45,000.00 is MINE?

Here are some preliminary numbers I ran: 260K FHA no repairs and current rents on left, 300K 203K, reno and higher rents on right: % Down Payment 5.00% 5.00% Down Payment $13,000 $15,000 Remainder of closing costs $3,000.00 $3,000.00 Total Due at Signing $16,000 $18,000            Mortgage Rate 4.60% 4.60% Length of Mortgage in years 30 30 Monthly Mortgage payment $1,266.00 $1,461.00 Taxes $386.00 $445.00 Sewer and Water $50.00 $50.00 Trash $50.00 $50.00 Heat/Utilities $ - $ - PMI $ 180.00 $ 208.00 Cap Ex and Ops $200.00 $200.00 Insurance $65.00 $75.00 Mgmt Fee $165.00 $165.00 Vacancy $132.00 $132.00 Total Expenses $2,494.00 $2,786.00     Unit 1 $500.00 $700.00 Unit 2 $900.00 $1,100.00     Total Revenue $1,400.00 $1,800.00     Cashflow/month ($1,094.00) ($986.00) Cashflow/year ($13,128.00) ($11,832.00) Cash on Cash Return -8.42% -6.57% I have not talked with the seller in detail yet, as I want to see if this is worth a deeper dive first. 

Wes Austin is the owner with Charleston Real Estate Repairs.

A property that is 70-80% of Retail value and then subtract out the repairs.

My contractor called me and recommended replacement as the unit was old and the repair would be over $1000 on a unit that was starting to nickel and dime me. 

My return is 7% when you run numbers the right with vacancy and repairs.