I don’t necessarily know the real estate ins and outs of each neighborhood, but I know the good, bad, and hip neighborhoods, as well as the relative income levels of each.

Hard to know what the ARV is on this type of building because most of them sell off market in my area and are in pretty bad shape when they sell. 

Hopefully its not too bad since tenants are currently renting...

I know where to find deals, but how can I tell a good deal from a bad one?

Since you will be living next to them this is even more important and can make a great investment feel like a nightmare if you get a particularly bad tenant. 6.

To start, the numbers:3 bedroom, 1.5 bath 1700 sq foot brick SFH with bonus room.Purchase Price: $59kAppraisal: $105k as is with estimated $124k after rehab.Renovation budget: $20k.Renovations include: new flooring in bonus room, kitchen and baths. total renovation of bathrooms, new cabinets, crown molding (to cover bad drywall job by previous owner), buff hard woods, paint exterior, paint interior, remove awning, remove side door and seal up, fix low spot in kitchen floor, and remove the non-permitted fire place.Estimated Rent: Initially I budgeted $950 per month based on another rental I own in a similar location, but  two houses on the same block were recently rented for $1200+.

There has been a dramatic increase in listings, but if you keep your rental nice and kind of unique/stylish, it's likely not a bad investment idea.The city/region has a major issue right now regarding hotel/short-term rental availability.

My hope is that this issue is a one time thing and maybe I just got an inspector who was having a really bad day.

Sounds like you can't golf year round because the weather is too bad...).  

ha.Tenants said they weren't home, and a neighbor had called the fire department and put it out.Tenant sent pictures, and for a fire, that damage was not too bad, damaged some vinyl siding etc.So, obviously since the tenant was not there, I am thinking it must of been some electrical issue.