Your mileage may vary, but that was my experience.Good luck with this!

Too often, people overlook property taxes and insurance which vary greatly.

I'm no lawyer, so I would double check with one, but you should be able to offer a one-time discount on rent in the first month and still have the rent be $1,000 per month and thus be able to collect the maximum security deposit allowed by the state based on the normal monthly rate.At least in Michigan I've seen many first month free specials, and I doubt they are going without a security deposit.Word of caution though, these laws vary from state to state so double check with a local real estate lawyer.

I know I wouldn't rely soley on a inspection report supplied by the seller.

I'd suggest you go local and not deal in national investing strategies starting off, doing so means you won't be in the driver's seat but relying on others in management, valuation, financing and general operations.Have no idea of your skills. not just RE knowledge or experience but your social skills, ability to deal with the public and others.

If the outside needs as much work as the inside then costs can go much higher.Labor costs and materials vary by state and the property is a case by case basis.In some states with harsh winters getting contractors to do anything is tough during that time and your labor rates will go way up.

Too much can and does go wrong and not being able to put your eyes on it and relying on someone else to look after you financial interests when it may not be in their financial interest is an iffy proposition at best.If you hunt diligently and network locally you will be able to find a better deal right where you are.

Do you think the approach here varies much by class of the property?

Hello Britt, Thank you for your rely.

Made like 12% profit.Now i'm looking to invest closer to home, so that I can have a handle on things and be on top of it rather than rely on someone else.