Also a good equation for maximum allowable offer (MAO) isMAO=NOI/MARKET cap rateDont use the cap for the property, use the cap for the market it is a much better estimate of the future of the rental market in that area.  

What would you estimate is the market value of the property?

You are then allowed to use 75% of that for qualifying income.For example: If the appraiser estimates $1,600 in market rent, then per Fannie guides, you can use $1,200 towards your qualifying ratios.

Be sure to outline how the down payment credit was accumulated and consider adding a clause about a partial refund for tenant-buyers who cannot qualify for a mortgage at the end of the RTO. 

I am interested in buying and holding property and getting cash flow from renting the properties I accumulate. 

Most everyone can gut a home, but knowing how to estimate costs,  see what needs fixed and be able to accurately estimate  a job, project is critical to you even having a chance at succeeding.

(This one is rolling around in NJ, only cost about $3,000 for the full wrap, and he estimates it has paid for itself 20x over...).  

I saw this one on the hotsheet and sneezed a little at their estimated rents too.That area is actually pretty supportive of closer to $650/$750 for 2 bedroom units in decent shape.

Rehab Estimate (vacant or if resident leaves) 14. 

Call a couple insurance companies to get estimates.