Let’s do the math: I’ve given them $250.00 in five years, oh yea, I put new carpet in the living room because it was old when they moved in – maybe $400.00 (installed).They in return have paid me a couple of late charges and in addition $54,000.00 in rent alone.All on a house we paid $45,000.00 for 9 years ago.

If we need to re-side the property, we'll install new siding over the old asbestos siding, and it's perfectly fine.

After I fix it up and get my tenants installed I want to get a mortgage and pull most of my cash out. 

We are thinking about installing AC since a lot of renters ask for it and we feel it may be a good addition to the property in the long run.

They are reasonable, have a wide selection and install themselves.

If they do not have a security and LMR, and you want it, they can pay monthly installments until they hit their numbers.

I'm submitted my first offer today.Sq Ft = 1,018List Price = $65,000Initial Offering Price = $32,000Max Limit = $40,000ARV = $125,000Realtor Fees = $7,000Closing Costs (Buy & Sell) = $1,200Inspection Fee = $350Holding Costs (Personal Loan) @ 6 months = $4-6,000Total Variable OH = $14,550Rehab Costs w/ contingency = $34,900Net Profit (ARV - Variable OH - Rehab Costs - Purchase Price) = $35,550Net Profit After-Tax (Impose short-term capital gains rate at 39.6%) = $21,827Work that needs to be done:Rebuild mudroom and re-route washing machine/dryer lines = $4,000Kitchen Rebuild: Cabinets = $1,000Granite CT installed, sealed, beveled = $1,400 New appliances (may use a 2nd hand shop) = $3,500Flooring and back splash = $1,500TOTAL Kitchen = $7,400HVAC (received quote w/ ducting install) = $6,000Front porch repair = $1,000Half-bath install 12 sq ft (@ $100 per sq ft) plus cost of supplies & equipment = $3-4,000Add closets to each bedroom = $1,500Fix ceiling water damage = $2-3,000 Foundation leveling (house has settled) = $1-2,000Renovate full bath (replace tub, new vanity, replace toilet, re-tile) = $2,500Simple landscaping (mulch and shrubs) = $500Fixtures and Hardware = $1,000Contingency = $2,000GRAND TOTAL = $34,900I'll be doing the majority of the work but will have to sub-contract out construction of the mudroom, half-bath install, and closets.Immediate Questions I'm concerned about:1) Cost to rebuild mudroom.

The water table is high in this community, so we had to install a new drain tile for proper drainage, which was the main expense that we hadn’t originally anticipated.

I recently had 1000 sq ft of laminate flooring installed. 

To take it a bit further ...Just show up one day and say you want to install smoke/co2/radon detectors in the basement.