Here's the deets with a couple of questions at the bottom:Purchase Price - $130,000Appraised Value - $150,000Down Payment - $55,000Loan Terms - 30 year fixed at 4.125%Monthly Rent - $1,595Property Management Fee - 50% of 1st month and 10% monthly One time costs fixing the place up, etc:- $1,500 paint labor- $1,000 Paint supplies- $2,500 tree removal- $500 ancillary- $6,100 - closing costs on noteTotal costs ($11,600 + $55,000 down payment) = 66,600QUESTIONS1) How does this deal rate?

Prospective tenants aren't very discerning regarding the units; due to the lack of supply they are just happy to get a place in town (affluent area, not a lot of lower income rentals.)I have contacted all the buildings inquiring about rents, so I am generally aware of how much they bring in and what their mix is.

Supply and demand apply to any economic situation so it's not quite as simple as saying more jobs means more demand, its likely that developers have taken notice and began to build as well.

Hey Aquila, we supply homes to overseas investors.  

Basic economic theory of supply and demand.

Second, if so, how strong is demand in relation to supply and in what areas is there interest from renters. 

Second, if so, how strong is demand in relation to supply and in what areas is there interest from renters.AlbanyTroySaratoga

Supply houses are the same way.

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.

Wild crazy guess here but what about changing the batteries on the smoke detector..