@Shannon Sadik There is a product that we use, it is called Kilz, we use them even for fire damaged room, factor those out and the painting expense and embed them in your contract.

Do you still factor in the “rent” of an owner occupied unit when calculating the value and other valuations?

Most designs before 1970's don't have enough seismic load factor, so they are weaker than today's standard. 

The janitor expense seems interesting as well as I am not sure who charges $33 per month to clean a common area...Here is what I would guess the building really looks like:Gross income minus 10% vacancy factor= $148770NOI using the 50% rule= $74,385True cap rate then would be 11.4.

I would also factor in concessions, and bad debt.

Based on these factors (and the fact that I am new and would prefer cash now to do more deals) I am leaning towards flipping the home.Thanks again. 

It's all factored into the contractor's bid.

Prices will reflect that, but buying dirt cheap means selling dirt cheap in a small town that isn't "related" to a larger market.Study real estate basics, location, market influences, inventory turn over, economic factors that effect value.

., The Wealth Club, Prosperity Group, Lifestyles Unlimited, Real Estate Titans, Renters Warehouse, and many more! 

My goal of getting into REI is to generate passive income to allow me to semi-retire in 10 years and live a more flexible lifestyle.