I spent about $9,000 on rehab (New roof, AC unit, new pex plumbing, etc).

Once I confirm the numbers and validate the deal, trust me, I will ONLY release rehab funds at certain, pre-defined stages, which normally track the permit process; carpentry/framing, concrete, electrical, plumbing, drywall, finish, final CO, etc.#5 - Oh, let's not forget..., What experience level does the borrower have?

If the original wasn't permitted but now you plan to permit, the inspector may require you to expose all the rough electrical, plumbing and HVAC in that room to verify safety and that there are no code violations.

If it is smaller than that, your rehab could very well be less.Is the electrical and plumbing in tact and good (other than minor repairs)?

We have in all of our leases a rule that after the second time of a plumbing back up that is tenant inflected, the tenant pays for the plumbing repairs.

Putting some replacement wallpaper up is obviously a repair.The IRS gives some examples of things that may fall into the gray area, but are actually improvements: Additions, like new rooms and decks Major changes to lawn and grounds, like roads and landscaping Miscellaneous major upgrades, like rewiring or a new roof Heating and air conditioning units Plumbing systems Interior improvements like appliances InsulationThe difference between an improvement and a repair can be a costly one.

I was thinking more about it and would definitely want some sort of experienced license contractor working on bigger projects(electrical ,plumbing, ect) but I know he does good work for installing carpets/tile and wood floors as well as bathrooms and kithen remodling.

More issues related to the previous owner's policy 'zero maintenance' have crept up since the property was rented (under the slab plumbing leak that required two expensive plumber bills).

Estate sale with no outstanding taxes or assessments that I can find.Exterior: Brick in above average conditionRoof needs tear off and reshingleNew gutters/downspoutsFront steps (limestone block) need redo9 windows need replacement-average size is 28x42Garage needs new doorsInterior:Needs new kitchen-everythingBathroom needs updatingRefinish hardwood floors-in good shape overallNew interior doorsNew paint throughoutUpdate interior hardware, fixtures, etcBasement:Damp-due to poor/nonexistent gutters/downspoutsClean/paintInstall washer/dryer hookupsMechanicals:New HVAC needed but duct work looks soundNew water heater neededReplumb, all galvanized-pretty straightforward plumbing jobElectric was upgraded to 100 amp breaker service approx. 20 years ago.

Except for the crappy polybutylene plumbing, everything else is in great shape.