I will note the current owner has performed a lot of repairs.

If you intend to purchase for 375K and put another 80K of your cash into repairs and later want to perform a cashout refinance you will need to make sure the property appraises for an after-rehab value of 650K assuming you can find a lender to lend at 70% ARV.(70% of 650K is approx 455K which is the 375K + 80K; to keep it simple I left out closing costs, carrying costs, marketing costs, etc)

You can hire contractors, you can fire them when they don't perform, you can call them up and cuss them out all you want.

The models are all over the board...try to find something that is already rented and performing or has a rental guaranty from the provider.

In theory, you could undertake legal action to make the seller "perform" on the original contract you had.

Is the work performed by California agents 5x that of the work performed by Ohio agents ????

Another issue is a tenant is still restricted to the use of property, making improvements and other aspects that require an owner to perform, like in contracting and obtaining building permits.

@David Wiebelhaus The selling agent will usually say anything they can to get you to buy to be honest, so I would pay close attention to performing my own due diligence.Moving along, I think the numbers look alright.

There is a limit as to what you can pay them for services performed.

Before you make an offer, you should perform a complete {DCF} analysis of the property to know the upper end of your purchase range to achieve the cash-flow / returns you desire.