I have seen some condo owners with lower COA fees get hit with major assessments they weren't expecting (think $8k for a roof, $2k for painting, $3k for elevators, $2k for paving, etc).

I stay far, far away from those 1%-1.5% deals.Whatever formula(s) you decide upon --and @Thierry Van Roy mentioned several good ones -- stick with them.

If you've got earth washing away around the house or below the foundation that is causing the foundation to sink into the ground, you may be looking at 10's of thousands of dollars.A much better description or some photos would be needed to really give any type of useful feedback.

I like @Darrell Shepherd 's approach...I'm doing a somewhat similar deal, where the money guys put up the equity and as the GP, I'm actually signing for a hard money loan to fund the remainder of the project.

row=1#modal_PhotoGalleryThese 50's houses are a lot easier to maintain, plus it has AC and a garage (tenants like those).

But I'd heed @Thomas Williamson 's advice as a local.To keep your deal, I'd ask for new leases to be signed by the tenants that get your rents to $1000/month through whatever graduated method you'd like.

I buy all my houses foreclosed, if he is selling those un-renovated and unoccupied then they may be over priced, my last two 3/1's I picked up for $5.8k and 7.3k.

Originally posted by @Bill S.

You need to mail 1000's every 3 weeks to the same list 5 times.

The last one I bought had 4 hands in the pot on the HUD-1. 2 $2k's and 2 $1200's.