I spoke to neighbors and learned that the fire damage was not widespread, and from looking in the windows, it seems like minimal repair work. 

I got a book on framing and watched some construction projects to learn that end of things but the drywall repair was pretty much trial and error and self-taught.

.$2,135.00MONTHLY INCOME$1,694.08MONTHLY EXPENSES$440.92MONTHLY CASHFLOW14.08%PRO FORMA CAP$9,853.40NOI$22,125.00TOTAL CASH NEEDED23.91%CASH ON CASH ROI13.59%PURCHASE CAP RATEExpensesIncome50% RuleTotal operating expenses:Mortgage expenses:Vacancy:$170.80Repairs:$213.50CapEx:$106.75Electricity:$50.00Water & Sewer:$162.00Insurance:$120.00Management:$213.50P&I:$380.20Property Taxes:$277.33$72,500PURCHASE PRICEPurchase Closing Costs$2,000.00Estimated Repairs$2,000.00Total Project Cost$76,500.00After Repair Value$70,000.00 Down Payment$18,125.00Loan Amount$54,375.00Loan Points$0.00Amortized Over30 yearsLoan Interest Rate7.500%Monthly P&I$380.20Total Cash Needed$22,125.00 Financial Info2.79%2% RULE $15,625.00TOTAL INITIAL EQUITY2.83GROSS RENT MULTIPLIER 2.16DEBT COVERAGE RATIOAnalysis Over Time3% /yearEXPENSE INCREASE 3% /yearINCOME INCREASE 2% /yearPROPERTY VALUE INCREASEYear 1Year 2Year 5Year 10Year 15Year 20Year 30Total Annual Income$25,620.00$26,388.60$28,835.54$33,428.29$38,752.55$44,924.83$60,375.21Total Annual ExpensesOperating ExpensesMortgage Payment$20,328.97$15,766.60$4,562.37$20,801.97$16,239.60$4,562.37$22,307.82$17,745.45$4,562.37$25,134.21$20,571.84$4,562.37$28,410.77$23,848.40$4,562.37$32,209.20$27,646.83$4,562.37$41,717.40$37,155.03$4,562.37Total Annual Cashflow$5,291.03$5,586.63$6,527.71$8,294.08$10,341.78$12,715.62$18,657.81Cash on Cash ROI23.91%25.25%29.50%37.49%46.74%57.47%84.33%Property Value$71,400.00$72,828.00$77,285.66$85,329.61$94,210.78$104,016.32$126,795.31Equity$17,526.25$19,494.41$25,837.43$38,134.84$53,197.53$71,986.64$126,795.31Loan Balance$53,873.75$53,333.59$51,448.23$47,194.77$41,013.25$32,029.67$0.00Total Profit if Sold *-$1,449.73$6,062.22$30,895.02$80,784.39$143,073.13$220,258.21$432,774.81Annualized Total Return-6.55%12.87%19.10%16.62%14.34%12.71%10.60%

Additionally, have you considered closing costs, repairs, maintenance, taxes and utilities?

The properties I am looking at do not need major repairs and many are bank owned- foreclosures.

Imagine you buy a house in cash and you film the entire process, how you talked to the seller, how hard you worked filming the entire process with  asking the contractors how much it will take to to repair the house.

pays off $800/month principal and 300 month CF (I manage myself and this doesn't include ANY repairs). 

I just don't know how much of an issue it actually is as of yet.I have thought about getting an estimate from a foundation repair company, but at the same time would much prefer to have an independent analysis of what exactly is needed instead of hearing it from someone who can easily inflate the situation to improve their own profit.Thanks for any tips!

@Troy Schwamberger you are correct. the 1.2x is a bank standard for lending, even if you are at 1 and not bringing home money, you essentially are making money. your tenants are paying for the house ( adding equity) the bills are all being paid for to run the property, pay insurance and taxes. you also get to depreciate the property and if you do any improvements to the property or repairs that gets deducted or depreciated while adding to the basis of the property, if it is a capitol improvement.

Hi everyone, I am considering to purchase an investment property that had foundation repair done by Straightline Foundation company in the area, lifetime transferable warranty is provided.