great advice, if you need extra support contact denise holliday and check out her website for AZ specific tenant notices and evictions - doctorevictor 

The comps and the neighborhood have to support it also but I totally could have done a typical flip and made a generous profit as any flipper would but I couldn't live with the quality that it presented itself.

It is going for 109,000 I want to try and get it for 90,000.Monthly gross rent-$1650Expenses Tax-264 a monthWater- 100 per month estimatedHeats-100 per month estimated insurance-100 per month estimatedvacancy-115.50 (7%)Capex 82.50 (5%)Repairs 148.50 (9%)Management 165 (10%) P&I 386.51Garbage 50 per month estimatedTotal 1,511.68 Monthly Cash flor 138.32COC- 6.64% Pro Forma cap rate-4.84%purchase cap rate- 7%2% rule 1.70I don't know if the seller would accept 90,000 but its a smaller place needing updating and has been on the market for about 130 days.

It tends to be  significantly more than a typical cost estimate for a sub It is always a good rule of thumb to judge rehab costs by if they have to come out and handle the scope of work or for lack of a better word everytime "they touch" the work your costs go up. 

This isn’t anything new this has always been the rule with Fannie/Freddie for cash-out refinance.

@Jason GravesI recently heard this rule of thumb: If you can realize ten years of cash flow through equity today, sell.

He would have to go to court and have a judge rule the QCD to the wife of his half was fraudulent.  

Many people do end up breaking this rule in hot markets so they can aquire a place or just because they purely speculate on rising values@Beau Fannon I agree, most people I've seen posting don't take into account all expenses related to a property.

With it being a central location with easy access to downtown/airport/UofL, it's supportable.

Do the rules still apply if I cash it out?