@Lucas Carl - Do those stats hold true in the 5-6 bedroom market?  

2 bedrooms.

Basement:- Ikea Kitchen w/ laminate countertop- new standard doors/frames/hardware (lowest prices ones)- New Ikea washroom vanity/fixtures- convert existing shower to bathtub (standard)- stainless steel appliances (get lowest priced ones)- stackable white washer/dryer (get lowest priced ones)- pot lights in living/kitchen/hallway- standard light in bedrooms- enlarge livingroom window (to get permit)- new flooring - Luxury Vinyl planks- AC/furnace/Roofing - 16 yrs old (should I replace before refinance?

No matter what you do, buying a property with a value add component, having ample cash reserves, having good financing and having immediate cash flow will help minimize your risk.Here is an article I put together on what to look for when passive investing: https://www.biggerpockets.com/member-blogs/10145/83067-limited-partner-s-guide-to-investing-in-the-right-deal

Just looking at those listing photos is depressing; the nasty old painted trim, deteriorated finishes, tiny cramped bedrooms....ugh! 

Your first testing date is 6 mos after creation of the qualified opportunity fund, so maybe that's ample time to deploy the capital you plan to spend on improvements. 

That all depends on neighborhood, purchase costs, holding costs, expected rent, standard rent in your area for a 3 bedroom, etc.

We cleaned up our single family property after it was vacated, fixed a few things, had the carpets in bedrooms professionally cleaned, and painted all the interiors.

Rent totals annualized $44,250Expenses Annualized $18,968NOI $25,281Asking is $350,000 (5 units) all 1 bedrooms Not much room for value add.

Purchase price: $190,000 Cash invested: $5,000 2 Bedroom condo overlooking the Ritz Carlton golf course What made you interested in investing in this type of deal?