I am thinking things like installing flooring, putting up cabinets, running new water lines, even roof repair.

Hey guys (and gals) I would love your input on this apartment complex I'm looking at.It might possibly need a new roof in the next couple of years.Here is the data:Gross actual rent: $250,864All expenses (not interest or depreciation) was $134,172The owner is required to pay the water bill which was a nice: $29,343Taxes were also a nice: $23,520.If I assume debt of $1.1 mm at 5% for a 20-year amortization I get $87,120 in debt service.So this is my math:Gross actual rent: $250,864All expenses (not interest or depreciation) was $134,172Debt Service: $87,120Net Cash Flow: $29,572Debt Service Coverage would be 1.34

Bad roof, some of the walls missing, no drywall whatsoever, knob and tube wiring, no plumbing to speak of, etc.

@Eric LiuThere is a makeshift chimney coming from the roof so that's how I assume he is keeping warm, but I haven't been inside to be sure.

Basically, the entire room needs redone (new: framing, wiring, roof, flooring, door, windows, insulation...) to make it functional again.

If you have decent properties in the 30k-50k range, and rents are $800 and up, I would put the money in putting in a new roof, updating the plumbing, and putting on some paint, and have a nice cash flowing property you can own free and clear in 5-6 years.

It would bug the **** outa me to replace a roof 10k on a 25-45k property...

I have an opportunity to get a mortgage for the first time ever (due to a confluence of positive circumstances such as mortgage rates, my DtoI ratio, my wife working, etc) and am inclined to get two or three, thinking that a good SFD is almost always going to be a good bet if it flows and doesn't need a new HVAC or roof for some time, and even if housing prices drop due to major economic fundamentals going awry such as a stock market bubble burst or our debt problems coming home to roost, or the middle class going the way of the dodo bird ...

A property that has wood siding in the north and a roof with 2 years left will have significantly different returns than a sided and re-roofed house with new windows.

He took me to court 2x this year for not painting a vent pipe that's above the roof line.