If a property needs a new roof, negotiate for either a seller credit or price reduction.

One 1700 sq ft house cost me $18,000 to put back together and if I hires a contractor the cost would have been $32,000.Welcome to the world of real estate for single-family homes where the costs to maintain the properties is about 4 to 10 times more than maintaining properties with a large number of units.I used to let my property management companies get estimate for repairs and the never had a magic wand, magic pills, or magic bullets and I always got my own lower prices and better contractors when I did not want to or could not do the work.Get your own prices, but $12,000 sound about right for a ton of things that have to be done and then you need to worry about the extras that are not on the list.

When the project is 100% completed and there is money leftover in the rehab account, the remaining money can be used for additional improvements or to reduce the principal loan amount. in 99.99% of 203k loan, 100% of the money is used with nothing being left over for additional improvements or loan balance reduction. 

I've amended to:1.Properties must provide positive cash flow. 2.Ideally looking for properties where costs are less than 50% of income.3.Owner financing where possible, due to Fannie Mae restrictions.4.Leverage property management due to physical location of investment properties.5.The main focus is positive cash flow but I’m rejecting areas with stagnant or depreciating property values. 6.Purchase undervalued properties to gain instance reduction in LTV after renovation.

If you are patient you can get closing costs, price reductions, and contingencies accepted.

You might run the risk of them doing damage to the property so I'd definitely put that on the seller prior to closing if at all possible or ask for a reduction in price for the hassle, potential legal fees and damage to the property.Good luck 

That's why it would be hard pill to swallow on the sale...I've also heard a few stories about persons whom have sold their real estate and wished they kept it.

It is unlikely to have a positive cash flow at a 7% or 8% interest rate.In SummaryAs I mentioned, waiting to buy a property only makes sense if interest rates and/or property prices decrease significantly, resulting in a significant reduction in your acquisition cost and debt service.I expect interest rates to rise in the short term, so waiting for them to fall is not a viable option.How much property prices will change in the future depends on population growth where you invest.If the populations is static or falling, I do expect property prices will increase significantly.If there is sustained and significant population growth, I expect prices to rise significantly, so waiting is not a viable option.Hwan, I hope this helps.

Worse case scenario is to turn all units back into long terms and even accounting for vacancy or a 15% reduction in rental rates this is an easy 8 cap property.THE BIG QUESTION:I need to find a structure that supports the financing that I have in place and also takes care of the investors and their needs.

If the seller is not willing to pay for the water bill they’re likely not going to be willing to take a reduction with you on any possible issues that pop up.