The owner is selling it for a reason...what can you do with it that he/she did not.And, I think you're smart for looking beyond the first year cash flow; the most successful investors I know are interested in performance improvement year-over-year and are confident in their skills to "create" a winner.Hope this helps...what little you shared didn't scare me in the least.

My intent it to use it to pay off some short term loans debts to improve my DTI and credit score, then refinance my house and put it back into the ROTH in roughly 6 months from the 'cash out' of the refinance while rates are still great.

I'm going to add a parking lot and some other improvements anyway so I'll take another swing then.Clint

With each deal it gets easier and easier because your processes and your knowledge improve.

By lowering your cost of living, improving a property that needs some work, and having your tenant(s) pay down the principal of your loan, your net worth will really climb while you're househacking.

Possibly adding a second bedroom in a 16x12 utility room downstairs.Option 1:We do $240,000 + $25,000 - $40,000 in mortgage plus improvements from the bank.

Our agency has a sister company in property management and one in property improvement so we can be a full-service operation.

Be diligent, do as he asks, and when you have the chance to present an improvement, try to frame it as if it was his idea.

Capital Expenditures go under the Lease Hold improvements in your chart of accounts, according to where my accountant says put it. 

My work is kind enough to give allowance to buy personal improvement items up to $500 during the work from home time.