I assume that more BR = more kids which of course means higher wear and tear.

Cash flow will be between $150 - $200 per month, after deducting all expenses including Monthly wear and tear as well as vacancy.

I would have to tear up a lot of stuff.

We also had giant trees blown over that took out the electric lines, tearing the mast and conduit right off the building.  

Doesn’t even have to be in any good shape, as I will tear down and do a new construction.

(Unless my calculations go the other way, which is unusual) If I see a Cap Rate of 15%, it's probably either a Tear Down or in a horrible neighborhood, or if I see a Cap Rate of 3%, it's probably a Grade A neighborhood.Never-mind that my calculations differ, it gives a point for comparison. 

Probably less wear and tear on properties.2.

Most of the time it takes money, blood, sweat, and tears!

Purchase price: $1,650,000 Cash invested: $1,250,000 Sale price: $1,650,000 New construction house- bought tear down ranch and built new construction home.

(Not all work you can charge for, such as normal wear and tear on paint and flooring).