(essentially turn key, pre foreclosure) 3bed/2 bad/ 1350 sq ftPurchase price $170,000Appraisal at $205,000Annual Expenses: $13,000/year (utl 3120, maint 1200, ins 2400,advert 1000, supply 100, lawn 1000, 6% tax 4180)Annual Mortgage: $9,056Expected Annual income @ $200/night, 60% vacancy: $43,200Annual Cash Flow: $20,937Cap rate: 17%We assumed high end of expenses list and low end of nightly rent, used vacancy from searching our property type and area on air bnb.

HVAC is now a high efficiency gas combi-boiler with newly installed central air.  

I would look into AIR BNB.

The Air BNB operator would need to take full responsibility of repairs and maintenance on the inside of the unit as well as full liability for the actions of their guests (damage to property, illegal activity, parties that upset the neighbors, etc).

We added value by updating the roof, furnace, water heater, Central Air, and then doing a decent sized renovation on the interior.

@Jordan Williamson Thanks, man.

(STR means Short Term Rentals like Air B&B owners, vacation condo owners, etc)

The heating unit is currently pumping out unhealthy levels of carbon monoxide and dirty air into the house.

@Jordan Moorhead, thanks. 

In order to do that you would still have to plastic off the whole room for 3-4days to do it right and run a negative air filtration system the whole time so their entire apt doesn't get covered in dust.