If the seller is living in the house, just take as many pictures and videos as you can.Does the seller know you are assigning it, or does he believe you are purchasing the house yourself?

Sorry I don't have a picture, but let me explain. 

There are many factors to consider here without pictures.

Since my speculation was not true and they are not one and the same, then the picture changes.

It's impossible to tell from the picture what the costs might be to finish it.

Pictures are coming soon...I think the obvious answer is 'Yes, bill the tenants for the new hot water heater'.

Most of the people I work with - pass on 90% of their opportunities because they get the full picture on rehab costs before acquisition.  

I see a child in the picture which adds complexity to your ability to do a good job.  

Hope I painted a good enough picture for your guys' evaluation on my current situation..just look for some advice on taking on a flip or buying rental property considering I don't have a job.

We are currently using traditional financing with 20% down.Unit 1 - rent = $495Unit 2 - rent = $650Total income = $1145Cap rate (based on our offer) is 16.4%Cap rate (based on asking price) is still 14% ROI = 34.41%Picture below is from Bigger Pockets calculator:Picture number 2 below is our own calculator at full asking price purchase: if we were to increase rent on the smaller unit our cash flow will increase (easy added value).After walking through the property twice we see no real updates that are needed. ($0 estimated repair costs)We are waiting to hear back from the agent if we need to counter offer.