I have two deals, but I can only finance one.First deal: 4-Unit Building for Buy-and-Hold-28,00 down, 188,000 asking price (about 85-90% market value assessed through comps)-owner financed for two years with refi-balloon, owner pays insurance and taxes AND will take ALL of my payments toward principal (28,800 over two years), leaving me with 131200 left on principal after the two year period-property is in a small, clean, safe, and well-to-do 'podunk' town between three of four of this area's biggest cities, allowing less than a 20 minute commute to all of them-the property will likely need few, if any, repairs and cap-ex over the next few years as it was gutted and completely rehabbed 18 months ago-I would be paying ALL utilities and internet access, at least for the first two years prior to my refinance-proforma: After Purchase Rents 3000 Facilities income 100 Gross Operating Income 3100 Taxes 100 Insurance 90 Vacancy @8.33% 250 Maintenance @6% 180 Management @10% 300 Refuge 20 Water / Sewer 100 Cable 150 Gas and Electricity 400 Net Operating Income 1780 Debt Service 600 Cash Flow 1180 During 2yr LeasingRents3000Facilities income100Gross Operating Income3100Taxes0Insurance0Vacancy @8.33%250Maintenance @6%180Management @10%0 (I will manage)Refuge20Water / Sewer100Cable150Gas and Electricity400Net Operating Income2050Debt Service1200Cash Flow780Deal Two: 3/1 for partial rehab and flip OR buy-and-hold-in a family-neighborhood with good schools (where children in the public schools get free college eventually), in the wealthiest and fastest growing of those 3 cities mentioned above-needs a 50% rehab (ALL new appliances, new kitchen, new windows, full cosmetic throughout-has a basement and space for a master bath to make it a 3/2-comps in the area run 80K to 100k-monthly rental price could be 1100-1300-buying it from a wholeseller with whom I could establish a relationship for future benefit-Estimates: Purchase Price 19000 Repair Costs 24000 After Repair Value 90000 Purchase Price % of ARV 21% 6% Agent Commision 5400 Closing costs 1200 Carrying Cost 4mths: tax 580 CC: Utilities 1000 Net Profit 40200

I sometimes think of buying properties there for the appreciation aspect, but I haven't had the guts yet :)And @Jay Hinrichs- you should fly up to the airport in Hoquiam sometime.

@Jamie Montpellier  quick back of napkin I always use is 3500 to 5k for baths... 10 to 15k for kitchensthose are gut and replace numbers... this is usually half or so of a rehab.

The kitchen was original, and needed to be gutted. 

My partner is my best friend, and she usually has good gut instincts.

If that is what you could get out of the place, then yes, I'd think your gut is right, no thanks and move on.  

If it smells fishy, and you gut says to RUN!

The kitchens and baths are total guts, $16,000 for two kitchens and two baths.

While I was interested, (not for a profit, however) my instincts told me to be careful and not rush into things as my reputation was at stake if his data or service was questionable. 

Just to give everyone an idea of the scope of work needed, it includes new siding, roof, plumbing, extensive electrical work, full gut bathroom and kitchen, possible mold issues, and a few other smaller issues.