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.

It is similar to facebook tagging and prompts them that they've been mentioned. 

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.

Hi All,I need some advice...I know there are basic %'s for Vacancy, Repairs and CapEX (5%-10%) when analyzing a deal. 

Of course not.I give the contractor the tenant's contact information and they schedule a time to make the repair.

The owner isn't going to repair anything.