A BPO will not unearth unseen problems that may exist, such as termite damage, excessive interior damage caused by an occupant, etc.  

I'm sure others will embrace a value-add property, will happily put in sweat-equity, will do the interior repaint with their free weekends, that just isn't me.

Add another 10k for other repairs/upgrades ( the place is in great shape on the interior).  

Major things banks will look at is age of roof, age of HVAC, exterior and interior conditions, secondary uses, etc.

THE PLAN: 2X new HVAC systems 2X new hot water tanks EXTERIOR replacing rotted trim and siding where needed paint entire exterior gutter work where needed deck repairINTERIOR New flooring where needed 2X Reglaze tubs/showers paint cabinets white, new hardware paint all brown trim/doors white replace some light fixtures sheetrock bonus room in bottom level install garage door openers redo a staircaseRoof & carpeting are very recently redone.TIMELINE: 2 weeks (depending on weather, it may bleed into a 3rd week)COST of WORK: $19,000 Duplex: $66kCarry/Closings: $5k TOTAL: $90kPost Reno Value: ~$110,000 ($700 rent per side, with all new HVACs, roof, water tanks, and updated interiors going rate 1.25%-1.3%)I'll close Friday April 28th

The Gc would have to go back to do the work to par so that funds can get released so the GC can move on to the next stage.The above is a bit more complex when do you do a 203k over 35k in total cost + reserves/fees since it requires a HUD/FHA consultant who goes in on the transaction to consult your GC to let them know what HUD requires and can incorporate a plan of upgrades with your needs and wants with whats required by HUD.Other than the construction complications, plans, surveys, bids, trips and conversations with the GC and HUD consultant, & disbursements of funds the 203k is a "regular FHA," loan when it comes to qualifying.From the lender point of view I tend to do a maximum assessment of buying/borrowing power first to determine if the borrowing power of the individual meets their price + rehab requirement.Sometimes when you know its around 4-5 bucks per sqft (interior) for a regular pitch roof for full tear off + new replacement comp shingle and the borrower has budgeted only 2-3 bucks a sqft you have to pad those numbers for them or do some homework on their subs to make sure your going to be able to qualify for more when the budget has cost over runs.I've found it best practice to over qualify for rehab variances since it always seems that people like to add on more during the bid / consultant stage.The one caveat with 203k programs that are not required with the conventional variant of rehab loan programs (Fannie Mae Home Style) is that on 203k you have to have min equity before you can qualify.

Interior needs to be done.

If interior, window sills are about $2-3 a foot maybe and an hour a window for my husband who is an engineer by day so you'd think less for a skilled trim guy...assuming you have to remove and reinstall the trim all around the window to replace the sill.

I bought a portfolio of properties in March, one of which was improved with a single family home and a 1970SF storage building that resembled a duplex from the exterior but a garage in the interior.

He also wants 300k for the pair, which, assuming the interiors are not a total crap shoot, is pretty darn fair.