Forming/ placing even a short wall is of course more expensive than a slab.  

They are homes in great shape but not real expensive ...anyone know of a lender that I can use to get this refi at a decent rate?

I did calculate 5% for vacancy and 5% for expenditures for unknown expenses. 

About 1000sq ft)Monthly expenses including mortgage, taxes, insurance, hoa etc: $950Rents $1450/moSo it feels like a good deal but here's the kicker, it needs a new furnace/ac which is a combined unit that is outside.

What expenses do I need to include and what is a good average amount for each.

One thing not listed here is that the newer home may have a s high as 4% taxes, where the oder one may have 1%.Foundations issues and a new roof are expensive, though, i I agree, this one may not be the best wholesale deal to find. 

@Mark KelleyAccount ClosedMark, I have not looked at Pittsboro but it seems to make sense based on Chapel Hill getting too expensive.  

Taxable Value 75,830Purchase 50,867Tax 1986.70Vacancy 10%Repairs 5%Capital Expenditures 5%Property Management Fee 10 %Investment results: Purchase Price: $50,867.00 Purchase Closing Costs: $3,000.00 Estimated Repairs: $0.00 Total Project Cost: $53,867.00 After Repair Value: $70,000.00 Down Payment: $10,173.40 Loan Amount: $40,694.00 Loan Points: $0.00 Loan Fees: Amortized Over: 30 years Loan Interest Rate: 5.000% Monthly P&I: $218.45 Total Cash Needed By Borrower: $13,173.00 Monthly Expenses: $643.95 Total Cash Needed: $13,173.00 Cash on Cash ROI: 5.11% Purchase Cap Rate: 6.48% Really, I know it’s not a great deal, but it’s a property that I can buy into for cheap.

I am not a banker but I think this would also help out DTI since our overall expenses are going down while rent stays the same. 

Operating expenses would need to be provided by the owner and may not fully reflect everything.