What is occupancy and rate and how does that compare to your competition? 

Think on it, how much does $250mnth buy for a furnace, a/c, water heater, carpets, really any reno at all?

You also mentioned an unpaid water bill, so be sure to deduct any outstanding balance from that bill as well. 

Leverage magnifies return. 3) The effort involved in adding an ADU is comparable or larger than a rehab associated with a BRRRR.

I also see your point about avoiding bargain basement properties, especially insofar as tax shielding is easier with an asset of a reasonable size.Your point about barriers to entry is also interesting, since I suppose those barriers can be geography (natural boundaries of mountains/water), but you're probably referring to that which impedes future construction?

**Maintenance**: Be prepared for a bit more wear and tear compared to market-rate rentals.

I'm not saying you're doing this, but people will often make the mistake of looking into the highest priced rental unit and making that the "market rate" but it's often not a true comparable to the subject.

It would be based on the scope of work of the renovation that you're doing comparing for values in its as is condition and values after rehab 

With three of these houses, he will make $2100 a month, which is comparable to the $2300 he is currently getting. 4.

Another post someone made a comment about how “he can help the seller avoid foreclosure”These types of predatory messages also can get you in deep hot water as they have no intention of helping they just want the house at a discount