Obviously getting a solid home that is newly renovated will be important as well. 

About 1.5 years ago, I moved to Omaha and have been renovating the house I bought--it's almost finally done and I'm ready to get started on a new project (about $130,000 equity in house; no mortgage).

If you are going to pay retail value (which there is nothing wrong with that), you want to make sure it is renovated to retail for the area, otherwise you really will be upside down.  

This is also how I would sell him on the deal.Estimated Minimum Closing Costs $5,500.00Estimated Closing Costs Based on Prop Value $5,500.00 Repairs/Construction $10,000Total Loan with Seller Concessions $100,000.00 % Down Payment 20.00%Down Payment $20,000 Remainder of closing costs $15,500.00 (this assumes you are paying for the renovations out of pocket)Total Due at Signing $35,500 Mortgage Rate 4.75%Length of Mortgage in years 30Monthly Mortgage payment $417.32 Taxes $100.00 Sewer and Water $- Trash $- Heat/Utilities $- HOA $30.00 Cap Ex and Ops $150.00 (this is your future roof replacement, hot water tanks and other major items)Insurance $250.00 Mgmt Fee $140.00 Vacancy $113.40 Total Expenses $1,200.72Total Revenue $1,400.00 Cashflow/month $199.28Cash on Cash Return 6.74%

Your best way to find a deal would be through a realtor buying some under valued properties in your neighbourhood and then just re selling them after small renovations

The quality of the renovation, what features are needed.  

Hi BP,My wife and I renovating our first investment property, a duplex in Indianapolis, using a 203K loan.Because I am a permanent resident (I immigrated from Canada to marry her in 2013), all of the loan is in her name, which may or may not be tricky. 

One is now fully renovated and rented the other is a live in flip with a partner.

 $1.6m later it was renovated.  

Should I incorporate a Renovation company?