It is pretty nasty inside but nothing a good cleaning lady and coat of paint can't fix.

I've estimated from realtors and contractors that it'll take $8.5k plus a Murphy bed to command rents in around $1.3k.I'm looking to fix it in mode of the Houston micro condos in that area.  

It would be stupid of me to be giving 10% of my monthly cash flow to a PM just because I don't want to fix a toilet at 2 am in the morning.

Here are the numbers:Purchase price: $120,000Renovation and financing/holding costs: $35,000ARV: $185,000 - $195,000Potential rent: up unit $1,050, down unit $1,150I used a 1-year fix and flip mortgage to finance the deal and need to make a decision on what to do once work is completed.

You can Fix & Flip, you can Buy & Hold, you can do Tax LIens, you can do Multi Family - I was asked what I specialize in so here it is:I write this post to encourage those who want to be successful.

The only thing I would have to fix would be the garage at some point.

Sounds like a hard money loan....buy the house, make the fixes and then refinance if you are going to keep for a rental or home purchase.Lots of normal lenders will not lend on homes that are not in good condition. 

So we decided to take out HELOC with 3.99 fixed rate ,3 years draw period and 10 years Amortization , $0  closings costs.

He only gave you an estimate, not a fixed price bid. 

Or it could be a multi-thousand dollar fix.