months at which time I can have the property reappraised and be eligible for a refinance, using the anticipated equity and rental income instead of cash.

I would anticipate the returns on buy and holds to improve as rental rates continue to increase as well.If you go to other areas you can get higher returns as well. 8% and even 10% in some areas.

I would anticipate that to be $1000 or under.

If so I am anticipating a 1% fee from the mortgage broker.

This way you'll have a nice buffer of qualification in the event you find a property that is a bit higher or if the seller or escalation clause in your offer requires you to go higher than you had anticipated.- on 203k loans make sure your loan officer connects you with a local HUD consultant who can review the property to let you know the min required repairs that will be required by FHA so that you can decide your "wants," and "must haves," and find a fine balance in between the two to arrive at the highest and best use of your proposed purchase- 3-4 units with FHA also need 3 months of reserves- 3.5% down payment is 3.5% of the total cost which could consists of purchase price + reserves + inspection fee's + rehab costs + closing costs + prepaid interest up to 6 months.The cool thing with 203k's are that you can use the ARV rental income with the after improved property as well so in a way 203k FHA's have an easier time meeting the self sufficiency rule with FHA 3-4 financing since regular FHA financing on 3-4 units without 203k will have to use the lower of current rents or market rent.

I agree, if the time frame was short it owuld be viewed as an expense to the property, if it were only in the "anticipation of" it could be a different outcome, I'd think.

I wouldn't care what it sold for years ago.You are banking on equity versus a value in the past.It was 185k and took a free fall.You rehab and then have about 90k in or or more with purchase price whether that is your own cash or debt service or a mix.The property then say in 3 years is worth 120k and with resale costs you might make 20k.So really you have to look at time for the return and what you have to do in work and risk to get the anticipated returns.Then you have to ask yourself "Is there something better out there with a faster return for less work??"

It has to do with the fact that it is a new home, lower maintenance costs in the first few years and also that the class of renters you will have in a home like this will most likely require less hands-on management, but that is just a generalization and I wouldn't let these factors destroy my required return and then regret it later on when they are a pain or your maintenance/insurance etc. costs are higher than anticipated.

You need to anticipate some amount of repairs every year.

If you're anticipating a rapidly rising market this isn't a big deal (bank will get a new appraisal).