When you let someone moving in know that you do inspections on plumbing and working safety features every 6 months you will lose potential tenants that smoke, are planning to move in more people or pets that you don't allow, etc etc. 

Brand new construction or down to the studs rehab is very different from a 1940s original plumbing.

The plumbing is already in place but both Lots are on the same water meter.

Place is a dumpy/disgusting, been vandalized, no floors, bad roof/ birds got in, kitchens barely exist, full bathroom reno,  needs all new plumbing and electric, new roof, new windows, all appliances, obviously paint / fixtures/ doors etc.

Budget for 5%-10% CapEx — not based off percentage — calculate how much the item would cost to replace and how long it has until it needs it then do the math — (roof, water heater, appliances, driveway, HVAC, flooring, plumbing, windows, paint, cabinets/counters, structure, components- garage door…, landscaping) Closing costs — around 1.5% property value RehabDetermining Cash FlowJust subtract income- expensesCoCROI (cash on cash return)Total Annual Cash Flow / Total InvestedRule of Thumbs General guidelines and not strictly accurateThe 50% Rule A rental property’s expenses tend to be about 50% of the income, excluding the mortgage P&I CashFlow = (total income x 0.5) - Mortgage P&I Helps just to quickly screen a property for further researchThe 2% Rule The ratio between rental income and purchase price Property’s monthly income must = 2% of the purchase price or greater The percentage varies on the areaCh. 6Investing While living in an Expensive AreaSunday,September 8, 20199:21PMAre you looking for homes on sale?

I have used Gorsuch Plumbing out of Signal Hill for Sewer Pipe inspections for several real estate transactions and have been extreemly satisfied with their service.   

Purchase price: $20,000 Cash invested: $60,000 Fix and RentPurchased Needed full remodel, foundation, electrical, plumbing, roof, HVAC, kitchen and all 3 bathrooms, new flooring throughout.

At the highest level of detail, the bid should have a detailed breakdown with the prices for each room, "Kitchen Cabinets, $XXXX; Kitchen Tile Floor, $XXX; Kitchen Drywall, $XXX; Kitchen Plumbing, $XXX". 

This house is around 700 sq/ft with a sagging roof, 1 interior wall separating this area with the kitchen, minimal floor joists, hardly any electrical and no plumbing.

Go to the supply houses--the ones that deal directly with contractors like plumbing supply, electrical supply, roofing, etc.