Return the security deposit portion with an itemized statement in accordance with local laws.

Rents are estimated to be $2300/mo and post construction appraisals are averaging $377k for this model.

My biggest piece of advice is to model it out - You will need to run numbers as doing a 2-20 (2% management fee and 20% profits to you), on a fund that is only $1M or $2M and you are basically doing it for free. 

A lot of the maintenance costs come from outdated items, which then get addressed in Capex too, or the wildcard: tenants.  

This was our bizz model when we did pre foreclosure rescue it was hair on fire and of course we took title sub too without title insurance and we did our own deeds and recorded them ourselves. 

Those items cannot be legally disputed.

Those items cannot be legally disputed.

To determine if the expense should be classified as a capital improvement or a deductible repair, the context of the expense is very important.An example is, if an item of expenditure is part of a general plan of modernization, renovation or rehabilitation to equipment or other business property, it typically must be capitalized even though on its own it would be currently deductible.According to IRS Code, expenses that you must capitalize are those that:Materially increase valueSubstantially prolong useful life (including replacement of deteriorating assets)Adapt the property to a new or different useHowever, you are allowed to deduct expenses and fees for routine maintenance and repairs that help keep the property in efficient operating condition.

If a property clears these hurdles, I’ll then start to dig a little deeper.If you're looking for "what line items should I use" when calculating expenses, just go to the BP calculator and see what they ask for.

Couple of big items that could be more than I originally ran the numbers for.