You can make money on improvements if you buy something distressed or in much more dated condition than surrounding homes, but if you buy an average home in a neighborhood and do alot of rehab, you are demoing value to try to add more and often the numbers won't support it.

The plan is to rent the other 2 bedrooms and will live rent-free. 

It's harder to BRRR MF if you use an FHA loan since it needs to be a certain condition to be loaned on.

Rule of thumb would be 6 months of reserves or $250/unit/year but depends on climate, age, condition, etc. 

Hi Andy,Flocked or not, you might want to consider paying a service to remove it.It's a lot of arms overhead scraping and at the end of the day you'll be glad you did.A good painter might have the equipment to do it.And with 3 guys on it--bingo--gone like it was never there.Just have them leave the wall in paint ready condition--and you may have to prime before painting.Also spec broom clean when done and provide them with somewhere to discard the demo refuse.Good Luck!

The paneling is is amazingly good condition - no gouges, splinters or even damage to the high gloss finish.The question is how dated does this make the house look? 

This deal was on the MLS and we were able to negotiate a lower price initially due to the dangerous electrical conditions.

This deal was on the MLS and we were able to negotiate a lower price initially due to the dangerous electrical conditions.

Current condition is pretty good.

I need to know specifically what types of property you are interested in so cal and what type of condition you can handle .