Luckily the previous owner collected 2 months security deposit and although it doesn’t cover everything, at least it cover some of the repairs and lost rent.

I’d suggest PMing me and get me on the phone before you waste any more time :) Rockstars know Rockstars. 

If you think it will be better to "get them out" this will give you ample time to complete said repairs, and then you will have the opportunity to find quality tenants (hopefully before winter!)

The property itself needs repairs which after having my contractor take a look he gave me a rough estimate of $55k.The property is listed at $175k and similar homes (in mint condition) in this area sold for $300k.

I had a couple properties like that and I sold, just to avoid the constant calls and repairs.

I would try breaking that apart and including it in the applicable expense category (PM, CAPEX, Repairs, Vacancy, etc.)Overall though, I wouldn't be too excited about this property.

You can deduct legal fees and repairs, but not lost rent.

@Daniel Winsor Just make sure the language regarding the roof repair being tied to your required performance are Clear, not vague.

Start with gross rents, then subtract vacancy, prop mngt, taxes, insurance, utilities, repairs, capital expeditures, etc.

(ARV x 0.7) – Repairs = Maximum Purchase PriceMe and partner are looking at an off-market townhouse that needs 150k of work and has an ARV $1,100,000. (1,100,000 x .7) - 150,000 = 620,000620k would be the max purchase price thenIt rents for 6.5k/month, property taxes are 10k/year---a decent 1%erI ran the numbers thru the rental property calculator with putting 20% down and get conservatively 10% CoCWe believe the property to be a good deal.