I'm a retired contractor  so poor condition is a plus.

They paid the rent on time all the time, kept the place in great condition, and never complained about anything. 

And could you give us the number of bedrooms + what condition it is?  

Don't be afraid to bring in a basement foundation repair company and get a quote to get the issues identified and fixed. 20% of 110k =  22k Down110k - 22k =     88k  Financed88k @ 4% for 30 years ===  Monthly Payment of $420  (principle and interest)Other Numbers you'll need:Property Taxes  (get on the county website)Insurance (just call an agent or ask owner)Repairs    ( Really depends on condition of property, 10-15%)Utilities    (get as many months of bills as possible)Property Mgt (even if you plan on doing this yourself)vacancy     (depends on market and property, 10%)LawnCap Ex    (depends on property but sounds high on this building) 15%These are VERY VERY rough numbers but lets look anyway...Gross Rent- 22,500 (assuming all 3 are rented at 625 and no washing machine income)ExpensesP&I-          5,040Taxes-      2,200 ( I figured 2% of home value)Ins-           800    Repairs     2250     Water       1800    (150/mth)          Look into heat billVacancy   1125Prop Mgt  2250Lawn         300Cap Ex      3375Total        19,140  22500-19140=  3,360   Cash Flow YearlyInvestment of 22,000 /  3,360 = 15.2% ReturnPlus tax advantages, paying a little down on mortgage, possibly appreciation, learn a lot.Location, Basement, Local Market, Comparable properties, and firming up numbers ALL need to be looked into.Let me know what you think! 

.#2  Property manager tells me the roof needs to be replaced - $4500 costs.At the time of purchase about 1.5 years I got a credit for $2000 for the roof because the inspection said the roof was in poor condition.   

Hi all,What is the best way (if any) to handle updates to a tenant's property condition documents after they have already moved in?

Both home are in excellent condition.

Cap Ex needs to be determined by property age and condition.

Depends on many factors, needs of a seller, your needs, type of property, property condition, use of the property, potential of the property, value that may be added and time frame.Many other factors too.RE is not a step by step, deal thing, it is as much an art as a science you won't paint a master piece with a paint by numbers set!

Also, an appraiser would ask if the prior sale had any Conditions of Sale (which includes a seller credit) and not disclosing the $20,000 credit would be fraud.