it has crawlspace issues, retaining wall issues, and roof issues with visible water stains on walls and ceilings in multiple rooms.

So I want to break down the deal below, and get a few of your suggestions on what our next move should be AFTER the rehab.Found the deal at an auctionIt is a single family home, 2935 sq ft, 4 bd, 3 bth in and absolutely FANTASTIC neighborhoodPaid $150,000 for the housePaid about $6500 to closeAppraisal came back at $187,500 and it hasn't been updated since the 90s as far as inside appearanceNo major flaws, mostly cleanup, cosmetics and updatingFactored in $30,000 for the repair costs (roof, flooring, paint, kitchen/bathroom updates)We put $30,000 down for down payment$120,000 will be financed at 4.5% PITI is $1030 (after remodel PITI will go down as we are switching to a landlord policy)After remodel will rent between $1500-$1700, maybe more but doing a little digging on corporate rentalsWorst case will cashflow right around $300 per month ARV will be in the range of $250,000 on the low end.  

They get substantial discounts on materials and HVAC 's roofs etc.

Besides being told that the roof is brand new in 2019, asphalt lot resealed in the last few years and all AC units replaced in last five years, I wasn't given anything else just yet.From your experience, what % of income is typically the most appropriate to use when estimating other costs like repairs, CapEx, etc.?

Much work has been completed from roof, decks, windows, electric, interior cosmetics & more.

Remodeling the entire house and doing a new roof What was the outcome?

I want to hold on to this property for awhile as I have my own business which I will take up in one of the units, so quality of construction is important to me as I do not want to deal with a leaky roof, low quality HVAC units etc. 

So unless you're fixing something that must be fixed (i.e. roof) regardless, do a cost to rent increase analysis.What I've found is often you cannot justify the cost of upgrades, unless you're prepared to kick out ALL the tenants and reposition the property to a whole different class (i.e. take it from a "C" to a "B"). 

But yes he definitely needs to tone it down especially on new members.. as they may get discouraged and run off for good

It seems like the house needs a new roof and furnace, in addition to minor cosmetics.