The return on this property look fantastic.Taking a dive in the expenses you are projecting, I think you are being very optimistic on those numbers.A 1% vacancy rate is very low and very hard to achieve.Same for your Capex and repairs expenses.It is best to be more conservative.

Repairs vs.

Expenses are 1800 (water, prop management, vacancies, & repairs).

Inform your tenant that they will be responsible for all repair costs and advise them to contact their insurance agent immediately.

I have: The ability to borrow money (I have a good full time job), I have access to systems to evaluate properties and their ARV, repair costs, etc.

I have: The ability to borrow money (I have a good full time job), I have access to systems to evaluate properties and their ARV, repair costs, etc.

I have: The ability to borrow money (I have a good full time job), I have access to systems to evaluate properties and their ARV, repair costs, etc.

Here are the #s from the BP property estimator.Purchase Closing Costs$3,500.00Estimated Repairs$0.00Total Project Cost$248,500.00After Repair Value$245,000.00Down Payment$8,575.00Loan Amount$236,425.00Loan Points$4,728.50Amortized Over30 yearsLoan Interest Rate4.375%Monthly P&I$1,180.44Total Cash Needed$16,803.50 $2,900.00 MONTHLY INCOME$2,468.77 MONTHLY EXPENSES$431.23 MONTHLY CASHFLOW7.89% PRO FORMA CAP$19,340.00 NOI$16,803.50 TOTAL CASH NEEDED30.80% CASH ON CASH ROI7.89% PURCHASE CAP RATEI assumed I'll do an FHA loan at 3.5% (or maybe 5%) and would pay closing costs out of pocket.

I just got the inspection report for the house and it says that the roof needs to replaced or repaired (see attached pic).

I’d put it under contract and assume a certain amount of money to repair.