Doing the actual work (on schedule/budget) shouldn't be a problem, since I'm a contractor - and I have a lot of resources in that area.My biggest concern is the re-sale.

Please chime in if I need to tweak it.This 2bd, 1.75 bath, 1389 sf house is a Foreclosure on the market at: $203,900I guessed a lower ARV for market cushioning $250,000 (but similars are comping at $300K+)The house could use$6000 Kitchen $4000 Dual Pane Windows$1000 Bathroom suites $1000 New Front Porch$1800 New paint in and out$1500 Landscaping$1700 Carpeting $500 Wood Flooring$16,500 TotalSo 250K * 65% = $162,500 - $16,500 (repairs ) = $146,000 Max Price (because I'm on a budget)250K * 70% = $175,000 - $16,500 (repairs) = $158,500 Max PriceI figure I should start at the bottom and negotiate up to the 70% figure.

I'm going to plug them into my budget and see what happens. :).

I did a similar thing by purchasing a SFH and renting out the spare rooms.Be sure to live under your means and set a budget to save $ for the next deal.

Just buy the property now and deal with the encroachment later" however I would, at minimum, have a plan in place and a budget depending on what the turn of events are.Good fences make good neighbors.

He brings no cash to the table.He also will hire a general laborer to help him for $10/hour and want's that to come out of the total rehab budget.

But that requires a good bit of training on demographic research, (not to mention design skills or the budget to outsource the design of your landing pages) and statistical data analysis so you can project the yield on your ROI.

They don't budget well, that's the only reason they don't have a place of their own, and that probably won't change, they're nearing middle age.

To Mark Forest , yes, it was a chunk of change, but we had it in the budget for investing in our property.

When you take into account that rehab usually goes over budget and sales prices are often a little less than hoped, there just isn't very much margin for error here.