BUT if you are going to flip it....the buyer is going to ask for the roof to repaired.  

So based off this calculation I determined that my portfolio is strong enough to move on with my expansion plan into a new market.Business expenses as % of total expenses : 70% 1) Fixed Expenses: a)Monthly Mortgages: 45% b)Property Taxes: 18.7%c)Utilities Expenses: 14.8% d)Licenses & Insurance: 5.4% 2) Variable expense - Water bills + repair expense : 16%Personal Expense as % of total expenses: 30% My monthly living expensesa)Housing: 39.7%b)Child Care: 25.4%c)Living expense: 22.2%d) Food: 7.9 %e) Insurance: 4.8Income 1) Total Income - 100% A) Rental Income: 42% B) Wage income (W-2) : 26 % C) House Flipping Revenue: 23% D) Property Management Revenue: 5% E) Stocks/Dividends: 4% Please let me know if you would like help walking through this process as it has been super helpful to understand my financial situation or send you the spread sheet I used.

I would be purchasing one unit out of four in the building, which was constructed in 1975 and needs exterior repairs including to the roof, carport, trees and paint.

Three will be leased and in good good shape when the deal closes, two vacant and in need of repairs, which will bring the all-in cost, including rehab, to just a hair under market value.

Expenses incurred before the in-service date will likely be capitalized (added to basis) and depreciated over the life of the property.It’s much more beneficial to deduct expenses in full as opposed to capitalizing and appreciating them, so it’s important to advertise the property as soon as possible.Since you’re doing rehab work, it’s also  important to note the different tax treatment of expenses with respect to repairs and capital improvements.These talking points should certainly be explored with a professional.

The old rule of thumb is that you want at least 30% equity to give you room for repairs, holding costs, sales costs while still earning a profit.

There is the week-ish delay of getting your funds but you should have reserves for repairs etc. anyway so that shouldn't be a problem. 

But I have to ask, for such an expensive repair, that from the sounds of it your decision whether or not to even buy the house hinged on, did you not think to get more than one quote/opinion BEFORE you bought the house?

Examples: *Duplexes with rent potentials of $1,500 per unit selling in the $500-700k range*Quads with rent potentials of $800 per unit selling for $500k+ (that need about $80k in repair)...I mean just quick 1% rule would make me RUN from this type of property...right?

Inside looks good, minimal repairs and RE agent estimates rent a little higher.