Tenants pay electric and water and I pay for yard maintenance.I had a realtor evaluate the property and they said the current value is 310K.I do not think this huge ARV is based on my my incredible renovating skills, rather I think I just got very, very lucky in nabbing a bargain.Below are some before and after pictures (I do not know why they are turned on theside, sorry).

It is just very important to know your market and know if you have a deal based on your own evaluations.

Often they hear from their real estate agent who says "the inventory is low", but the agent doesn't have a clue how to evaluate and a commercial deal.How motivated is this seller?

Many them use  illegal and questionable marketing methods to attract sellers.The system I developed years ago and still use to this day on houses - commercial - lots - land and nonconforming real estate is (STOP - understand - I am telling and not SELLING - only trying to answer a question) the system if followed - prospecting - evaluating- controlling and assigning by public auction is the basis of Control and Roll. 

You really need to evaluate the area you want to invest in and see what makes for a good investment.

Regardless of your choice of path here, you MUST first fully understand all that is involved as a landlord, paying special attention to operating costs and how to evaluate deals and your market you intend to invest in.

We evaluate capital allocation into renovations based on the following criteria:(Note - The items listed are examples, not complete lists)MANDATORY REPAIRS: (No Return BUT must be done for sale at Market Value)Code ViolationsMold RemediationWater IntrusionAsbestos RemovalInsect DamageFoundation CracksLeaking / Curling RoofLeaking / Damage GuttersDamaged / Rusted RailingsREPLACE SALE DETURENTS: (No Return BUT must be done for sale at Market Value)Original Windows >> Replacement Windows Oil / Electric baseboard heat >> Gas / Heat PumpNo Air / Window Units >> Central Air100A Electric Service >> 200A Service>> CONGRATULATIONS, AFTER THE EXPENSE OF THE ABOVE REPAIRS THE PROPERTY IS NO LONGER "DISTRESSED" <<FORCED APPRECIATION: (Appraisal Inflaiters.

@Chris Trull  Some key factors in evaluating markets include:1.  

Can anyone share the best way to evaluate a rental property.  

First off, if their take home income combined isn't at least 3 times the monthly rent than I wouldn't even bother running their background if the income isn't there.To answer your question I would evaluate each persons income separately, but use their collective income to qualify.