Scott The Book on Flipping Houses, The Book on Estimating ReHab Costs http://www.biggerpockets.com/flippingbookDownload BP’s newest book here some good due diligence in Chapter 10.

I doubled this estimate for my calculations.  

From what I see on BP there aren't a ton of areas where my numbers are even feasible.Another equation I do for testing a property is rent - 30% (vac&main) - PITI (15 year note) = reasonable estimate of long term cash flow. 

Im not sure If it will get that high in 2 years but 340-350 is a reasonable estimate.  

If the repair costs is estimated by HUD then you probably should consider having someone else do the estimate.  

The flat rate charges I've seen so far seem to push my estimated monthly PM expense up to 13 - 15% of monthly income.  

Monopoly taught us a valuable lesson we took for granted in terms of green and red houses and hotels, but the real key to the 'real' game is to change your perspective from being an earning employee to an entrepreneurial acquirer of assets - through your lifetime, and ideally, onto your heirs lifetime(s).Focus on asset accumulation, whatever the vehicle or vehicle(s), and you will see a vast horizon beyond your current 40k mental construct. 

Try to estimate with a spreadsheet while walking through all the repairs that will be needed. 

Since the borrower doesn't have the deed (it's held by the county trustee), you don't need to have a judge hear the case.Second, for non-performing notes I prefer states that have received Hardest Hit Funds since those funds can be used to pay the lender for any arrearages the borrower has accumulated.

I am estimating we can purchase this home for 35k to 45k it would need 40k to 50k in repairs and the ARV would be 175k.