If the hard money lender caps at $70,000. 

@Judy Angel,I don't think it is over kill at, all in all.

How about an app or a website that uses the API like padmapper.com that pulls sales price and the rent zestimate and automatically calculates a cap rate based on 50-60% of gross rents equal to a NOI?

In Indianapolis, we are able to get 15+ cap rates on duplexes and triplexes, and that's with 30-35% assumptions for property management, vacancies, annual repairs, etc. 

According to your numbers you estimate $9,118 in NOI on a purchase price and closing costs of $150,000 for a cap rate of 6.1%. 

I made them pay for this. but plumber didn't finish the job, just capped off some pipes going to shower in tub. now i have to get a plumber.

Also what are the cap rates and cash on cash (with rehab included)?

Please also read carefully the 82% cap rule in 61.34.120(1)(b), which basically says that a distressed home purchaser should buy from the distressed home owner at least for 82% of FMV of the distressed property.

Currently my plan is to graduate, get a raise, save down payment, and finally purchase a property aiming for a reasonable cap rate and cash on cash return.

Taxes - $2786  Vacancy - $1100 (1 months rent)   Cap Ex - $1320  Maintenance - $660  Property Management - $1320Net Income = $5,264 (Which is pretty good!)