TO MANAGE THE UNITS BY TAKING CARE OF TENANT PROBLEMS, REPAIRS AND TO PICK UP RENTS HE IS IN HIS 80'S NOW AND SAYS IT IS TOO MUCH OF A HASSLE FOR HIM NOW BUT NEEDS THE INCOME 

As far as LL not being able to charge for self cleaning of the premises / repairing damage I do not see anything specifically stating that for MO?  

.% down of the purchase price and the rehab costsCan be used for primary residence with 1-4 units (could also be looked at as a disadvantage)  When using 2-4 unit property, projected income from other units can be used to qualify 6 months' worth of mortgage payments can be rolled into the renovation budget if the house is deemed uninhabitable by the HUD consultantCredit scores can go down to 600s (lender dependent) DTI can go to as high as automated underwriting system allows (typically 56.9%)Allows you to buy a property in any conditionCan use it to fix minor repairs all the way up to basically a full tear-downFHA 203k Disadvantages: Interest rates tend to be about .25-.5 higher than regular FHA loan Additional costs include HUD consultant fee, inspections, title updates, and supplemental origination fee (Cost of doing business, but this is built this into your numbers, so it's no big deal)Must use a licensed General Contractor for a full 203k or up to 3 specialized contractors on the limited 203k Must hold onto the property for 1 year and live in it. 

On the surface it may seem like the same in terms of rental income but when you factor in vacancy and repair costs (due to lower quality tenant), and then add the higher tax rate, there is probably a noticeable difference to the bottom line.  

Are you accounting for vacancies, repairs, capital expenditures in those numbers?

All of my management companies have settled with me at the end of the month, which is fine by me because I don't feel they should have to float the bill for repairs throughout the month.

Repairs needed.. if I do it cleverly, about 10K.the rent there is 900- 1200 per month.But of course there is also a bad.It is in a not-so-good area and the house needs work.

well the after repair value is over $120,000 and the wholesaler is asking 36,000 and to rehab the the property will be $15,000 according to him.

I added quite a bit of fluff to repairs cost as well, as I don't have much experience at all when It comes to rehabbing...

If he's truly motivated and it needs work, I would see what the repair/replacement cost would be, work my cash flow numbers and then offer a fair price.