@John Zoulis I wouldn't trust 100/sf, you might ask a local builder to determine real and accurate prices, 150 and 200/sf is a safe number, for analysis, use those numbers, many can do it at 150, but your GC choices will be limited, use 200/sf just in case you run into problems or not have enough experience.

In my opinion, it would make more sense for him to sell for cash (the house will become less and less valuable over time) and if he got better he could rent using the money rather than returning to a house that needs a ton of work just to be safe to live in again. 

@Jared Saunders, I think you are pretty safe with your current reserves. 

Make sure all common areas (entrances and Egress) are safe and free of debris. 3.)

It is still a grey area, the safe bet is, you give them an HD reloadable card and track what they spend by registering as PRO account user, or have an envelope to put all receipts as part of payment requirement.

Note: it's a very safe investment as it's not tied to the market hence not subject to market fluctuations.

Based on the questions you're asking, it's safe to assume you don't understand the contract form, negotiation process, values, repair costs, assignment form, state laws concerning practicing real estate, etc.

I'm not complaining - I've done real well, better perhaps than I ever thought - but I played it too safe when there were a lot of bargains to be had. 

So appraises at $160k to be safe, 85% cash out refi- I pay my investor back $108k.

came through he said the cracks are probably no big deal but you should get a contractor to confirm they are safe...then the contractor said I'm not going to confirm that you need an engineer...and the engineer said those cracks are not a problem but to cover my *** I'm going to make you put a steel plate on there...So anyway...another $1000 later my cool vertical wood beam had a steel plate over it and the horizontal one had a number of LedgerLok screws.