Cranston is well within my range.

I have a colleague in LA who flips SFR's in the $800k-1mill range (with ADU's and they have never came in under valueFHA loan guidlelines do not give detached ADU's value.Though ADUs produce income, lenders cannot use the income to assist with approval as they can rents for a duplex.

Most are in the range of $30-50K.

I like the idea of paying cash for one or two properties in the 50k range and growing from there.

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.  

As far as negotiating it, I simply gave the seller a range of what we are likely to pay for it over the phone.

I am looking at single family homes that need reno in the 100-150 range.

.-  For a loan, keep in mind that banks are in the 4-6% interest rate range these days for investment properties, so a lender will be higher than that. 

Value is ~$1MM, putting your loan amt in the $600-$750k range, too small for Fannie/Freddie small balance. 

I am thinking I could find a new rental under the $250K range in the Boston or Providence Metropolitan areas right now (as long as the deal is right of course).