Conscious decision, timing was important, price reflected generous buffer for known needed work.What I didn't realize is, the tenants are kind of irresponsible slobs, and rather than reporting things to me or applying a _proper_ fix, they'll do a hack fix (e.g. they tied a piece of cloth around a pinhole leak in a pipe, which resulted in expensive water damage years down the line).I've run into a such few cases, where repairs were needed due to long-term tenant negligence (when they rented from the previous owner, so basically before our lease), and I'd like to protect myself and hold them accountable for any future such things that come up.

The main positive is that we are able to offer the number of beds/baths "essentially" under one roof.

We saw a way to help out the seller in a time of need and there was a large value add play for someone who had the money and experience to take care of the major leak and mold issues.

I've been interested in Real Estate mainly because of my family, I have 2 beautiful girls and another on the way, and I would love to spend more time with them and at the same time still keep a roof over our head.I'm glad I took a step and introduced my self to the Bigger Pockets Community!

it has crawlspace issues, retaining wall issues, and roof issues with visible water stains on walls and ceilings in multiple rooms.

So I want to break down the deal below, and get a few of your suggestions on what our next move should be AFTER the rehab.Found the deal at an auctionIt is a single family home, 2935 sq ft, 4 bd, 3 bth in and absolutely FANTASTIC neighborhoodPaid $150,000 for the housePaid about $6500 to closeAppraisal came back at $187,500 and it hasn't been updated since the 90s as far as inside appearanceNo major flaws, mostly cleanup, cosmetics and updatingFactored in $30,000 for the repair costs (roof, flooring, paint, kitchen/bathroom updates)We put $30,000 down for down payment$120,000 will be financed at 4.5% PITI is $1030 (after remodel PITI will go down as we are switching to a landlord policy)After remodel will rent between $1500-$1700, maybe more but doing a little digging on corporate rentalsWorst case will cashflow right around $300 per month ARV will be in the range of $250,000 on the low end.  

They get substantial discounts on materials and HVAC 's roofs etc.

Besides being told that the roof is brand new in 2019, asphalt lot resealed in the last few years and all AC units replaced in last five years, I wasn't given anything else just yet.From your experience, what % of income is typically the most appropriate to use when estimating other costs like repairs, CapEx, etc.?

Much work has been completed from roof, decks, windows, electric, interior cosmetics & more.

Remodeling the entire house and doing a new roof What was the outcome?