Positive cashflow and conservative expenses should keep you profitable.Cons- You will be 10k+ in the hole with your 20k repairs for only 10K in value.

One LL had a hole in the floor of the bathroom. 

If there's a hole, it may be a red flag.b) sensitivity analysis: I examine all the assumptions, and make sure I can live with the worst case scenarios.c) "Stall and see": if they are getting money over multiple years, and there is no penalty for investing later, I would usually wait so I get some real performance data, versus having to look at theoretical pro forma information.d) Recession stress test: I will not invest in anything, until I subject it to recession level stress and see if I can live with the result.

If it doesnt work than you will the holes in business that need improvement.

For example, I think Paragraph 15 (or somewhere around there) says that tenants may put holes in walls to add decorations, but says you may add conditions.

The most recent one being1) replace screen2) replace some floor tile in the kitchen3) patch and paint the holes that tenants made4) replace door frame in the common area (major), suck5) level and replace cement/stone that is outside of the house... crazy noyeah, every year is like that a god damn pain.

Deal Numbers:3 Bed, 2 Bath -  Approx 1,450 sqftPurchase Price: $45,000Expected ARV: $115,000Rehab Costs: $45,000 - $50,000 (2 holes in roof - somewhat sizeable but covered; moderate gutting of inside will need to be done; plus some landscaping)Expected Rent: $1,100/monthTaxes+Insurance: $1,900/year

All granite block construction, direct ocean front with sweeping views of Buzzard's Bay and the Elizabeth Islands, roof decks, 18 hole golf course, tennis courts, playground, heated in-ground pool, private beach, clubhouse, guarded gate, with heat included. 

Cost of bringing an older house in compliance with current code.Addition:1) Repair/replace damaged soffit & siding at garage, at chimney, at rear and sides of home and at front right corner due to minor rot, borer bees and damaged and broken siding and soffit holes to seal substructure (Replace all missing/damaged siding/soffit)2) Replace exterior door trim at right side door at back porch and left side exterior door at garage, seal & spot paint (door don't have to be replaced if trim can be patched & sealed)3) Replace four windows along back due to rot, seal and spot paint as needed.

Also, check underneath the sinks - if there are holes you can buy some sheet metal and cut it accordingly to cover any plumbing holes that are typically cut around sink pipes.