Another suggestion, sometimes agents are willing to reduce their commission some to make the deal go.

Look at mechanical, roofs, appliances etc. to reduce potential for reoccuring repair & maintenance issues and making move-in ready.If you provide a decent analysis of the property which peaks his interest, and he buys and finds you were spot on, whose properties is he gonna look at in the future?

Ultimately, you're just going to be reducing your return by putting money into the property at this point.

Seems to me you need 2.5 - 3 times that cash flow to make that work and also reduce your risk.

Any suggestions on financing such units are helpful.Also any help that can help me reduce expenses of multi-unit housing.

I then have to do battle to get the assessed value reduced to purchase price, which they do finally but it is a minor battle.

Make sure its priced accordingly (longer vacancies, reduced rent and possible future expansion to a 3bed-2bth).

Being right on the cusp of being "within spec", you might find that you regularly do exceed what is considered acceptable pressure.http://wiki.answers.com/Q/What_is_normal_house_water_pressurePressure reducing valves aren't all that expensive, and you can probably install as DIY if you were able to change tub valves.

Because you'd likely be paying a GC more than this anyway, this arrangement is fair -- your employee gets paid, but the total cost of the rehab is reduced by not hiring an external GC.

If anything it will be negative in that you will reduce your interest expense and therefore your deduction that you could take.