A house hacker with a  W-2 income can often times float some rehab costs on a duplex through cashflow or supplement some with their income.

I pulled this off but with an FHA 203k loan which allows you to wrap the cost of renovations into the loan. 

So I calculated an example. 20% of 352K is $70400 but there's also closing costs.

Whatever you use, make sure it's state-specific.6) Putting a cap on utilities is smart, especially when you're starting out and have no idea what they're going to cost you.

First year no PM cost.

I'm hoping to start the snowball effect and buy some more soon.

We took over the property management because the owner was having multiple issues with a few of the "tenants" that have illegally sublet the property, and we are now dealing with the ripple effects (e.g. squatters, dogs, dispute with neighbors etc.)The landlord is cash strapped, and has asked me to go in on the property/deal with him in order to get a cash infusion to cover legal fees & renovation costs. 

Currently they are rented to 2 different mid-term rental investors = basically no management cost to me + no turnover headaches for me.

The one month's worth of rent covers some costs (cleaning, readvertising) and the rest is a hedge against vacancy.

So, by trying to get a tenant out and replace them with another tenant you have a 50% chance they will be the same or worse, plus the expense, lost rent due to vacancy, plus any tenant placement costs with your PM.