There is a budget amount that may be a little tricky to determine but in the long run a house that has reasonable and somewhat "neutral" updates for the area is going to sell for more.

He definitely will not want to pay a double rent amount than what he would pay if he moved somewhere else.

@Kevin Polite Thank you Kevin, I needed that :-)     ( I'm going to list 2 houses in 30032 in the next 2 weeks... ) Yes, I'm seeing a lot of price drops in 30032 but honestly I think some investors went overboard with the base price they paid for their homes and the amounts they are asking for the rehabbed houses.

It may do nothing if people turn them into long term rentals.If a huge amount of houses were dropped on the market all at the same time, then yes it could move the needle.

@Troy HebertAll very VALID questions/ concerns that you pose.I will start by saying that RE as an investment has created the most amount of wealth out of any asset class.

Terms are important, lot rent amounts are important, utility expenses, tax, etc.

You are both entitled to your full entitlement amount (somewhere around $400k+ depending on the area) and you can reuse it or have multiple loans at a time up to that value as long as each is your primary residence for a year.

The downside is office unIt can sit vacant for an undefined amount of time, maybe years, whereas multi-family is pretty easily replaceable assuming proper supply/demand.

Details: Purchase price: $50,000Loan amount: $40,000Down payment: $10,000Interest rate: 6%APR: 6.404%TIP: 116.332%Monthly principal and interest: $239.82/monthEstimated Taxes, insurance and assessments: $292/monthEstimated total monthly payment: $532Estimated closing costs: $8,247 (+$10,000 down payment)Breakdown:Origination charges: $950Appraisal and all title fees: $1,862Recording and transfer taxes: $800Prepaid homeowners insurance and interest: $697Initial escrow (2X months Homeowners insurance + 12X months $250 property taxes): $3,000Other (buyers personal attorney fee $450 + Title-owners Title Ins $405): $855Thanks again so much for your time and input.

Most just look at the pictures, the rental amount, and click the button looking for more info.