With proper management and updates, I should be able to increase gross rents by $160 monthly ($1,920 annually) after the first year.

I will keep a eye out for the update. 

I would just use numbers based on regular long-term rentals and if you can still get $200 cash flow maybe that's good enough but really make sure you find the right tenants.

I will update when I get them in.Thanks

My insurance company charges a lot more if the the home is older and does not have documented updates to the electrical and mechanical systems. 

Just to update everyone, since I know you have waited with bated breath for news, I have not received a NDA/NCC or even a PM. 

Our cash-on-cash return would be much less, but we'll still get principal paydown and everything besides the roof should allow us to raise rents (central air, updated appliances, open up the kitchen/livingroom wall, refinish wood floors).

I will update this thread as the process here evolves.

I am assuming you have a regular homeowners policies which provides coverage if you live in the home.

 I would start getting an update on the lease.