@Shannon Sadik There is a product that we use, it is called Kilz, we use them even for fire damaged room, factor those out and the painting expense and embed them in your contract.

I'm pretty sure that in both cases, if I wanted just the termite inspection for some reason, I could have paid a lower fee and gotten that.Keep in mind that I'm very new to this, but my thinking goes as follows: If you know the house needs (say) $50K of rehab otherwise, and you have to open up enough of the walls or floors that you'll probably see any damage that is already there, then skipping the inspection and maybe having to spend another $2K on treatment if you find damage is probably not such a big deal. 

Do you still factor in the “rent” of an owner occupied unit when calculating the value and other valuations?

Most designs before 1970's don't have enough seismic load factor, so they are weaker than today's standard. 

The janitor expense seems interesting as well as I am not sure who charges $33 per month to clean a common area...Here is what I would guess the building really looks like:Gross income minus 10% vacancy factor= $148770NOI using the 50% rule= $74,385True cap rate then would be 11.4.

I would also factor in concessions, and bad debt.

Based on these factors (and the fact that I am new and would prefer cash now to do more deals) I am leaning towards flipping the home.Thanks again. 

It's all factored into the contractor's bid.

If the CPA is even talking about the Tax Court's treatment of something, that would be legal advice and improper.

Prices will reflect that, but buying dirt cheap means selling dirt cheap in a small town that isn't "related" to a larger market.Study real estate basics, location, market influences, inventory turn over, economic factors that effect value.