The reason that I got it so cheap was that it needed a roof.

That meets my 15% cash on cash return AND $100+ cash flow per door per month.Expenses as I see them at $164k and $2400/month in total rent:Mortgage Rate 5.00% (this could be lower if owner occupied)Length of Mortgage in years 30Monthly Mortgage payment $660.29 Taxes $421.50Sewer and Water $108.33Trash $-Heat/Utilities $-HOA $-Cap Ex and Ops $150.00 (this is my minimum per month per roof)Insurance $116.67Mgmt Fee $240.00 (10%)Vacancy $120.00 (5%)Total Expenses $1,816.79

Appraisal guy for bank came and wanted foundation and roof inspection.

What you want to do is what my husband and I have been doing for the past 12 years, we have been doing it this way which is the way it has worked for us:Our first home was a traditional sale FHA the house was outdated it needed a lot of work in kitchen and bathrooms plus carpet, we lived there for a few years mean while we were fixing it little by little with money out of our pockets the home cost us $117k we sold it for $220k, with that money we bought a piece of land (more like a lot) for $35k and built a house on it for $60k sold that one for $120k, we were fortunate to sale the house when price of homes here in AZ were really low we were able to by 2 houses with 120K but they were foreclosures and one needed a lot of work the other one also need some work but not as much so we lived in that one till we finished fixing both up the one that needed a lot of work (ugly one) cost us $40k and we put $20K into it we rent that one out now for $900 per month we are holding it for a few years to avoid paying a lot of taxes, the house has recently been appraised for $136K we have had the house for 2 years.The other house cost us $60K and only had to put $10k into it (we just put new roof, fixed rv gate and painted house inside and out) we sold it about a year ago and sold for $138K, we recently jumped to our next home which we live in it now we got it a year ago for $157K it was a short sale we just painted and fixed the pool and now it has been appraised for $225K.

But I was just starting a siding/roof rehab so had a dumpster so I (actually the contractor) just put it in there.

Property #1, being two buildings, would likely have some high maintenance costs--more lawn, 2 roofs, etc.

Foundation and roof are solid..

Do you anticipate huge costs such as roof, siding, etc.?

Reasons why I am interested in this property:1. it is a turn-key property 15 minutes from my house2. it is in a very desirable area and inventory is low3. the HOA covers ALL outside maintenance and the roof, siding (as this house is considered a detached condo).4. comps rent out for $1500-1700/mo. tenant pays all utilities.5.

Brand new roof after a storm knocked a tree down in 2010 (insurance paid for the repairs).