That wasn't an easy task as there was no longer any door frame, it had rotted away by that point.

Are you buying something with potential to improve performance or something stabilized?

I find distressed properties with good bones, rehab them for top rents.My challenge is the valuation of the property is still performed as a small mf (1-4 units) so the neighborhood Comps dictate valuation more than my improvements or the rent rate.I started to wonder how valuation was done for a portfolio of properties.  

If your second property fails and you had to foreclose, it could impact the performance of the first property, as well.I recommend leaving at least 30% equity in your properties.

While the work can be done by someone with little experience, it should really be done by a professional for best performance.

I performed a separate analysis using the VA loan, but I would still be in the negative (i took out the repair costs as I would not be able to do repairs).V/R, 

I know this is a vague question with some assumptions (specifically about the underwriting requirements of the loan), but I want to confirm that my logic is correct and if anyone has performed a similar strategy. 

Agree on the price per scope of work, and allow for extra pay when extra work is performed. 

A few things to keep in mind:1) any time you have a passive investor, you may potentially be entering the world of securities2) the way to avoid it is to give all partners some tasks so that everyone is active3) always discuss the potential structure with an attorney!

Paying water bills at different municipalities 4 times a year and then billing tenants back and collecting from them is also a significant administrative task - how does it compare in your experience?