Here's a simple example:Price: $50kRenovation: $30kHolding costs: $5kRenovation complete!

I know that sounds simple, but that is really how it is.

Is it true that you can increase the price of a home that is offered with seller financing so perhaps this amount offsets the discounted payoff offered by the note buyer or at least this increase may pay all or some of the Realtor's commission?

It appears the units are below market, however with some cosmetic repairs and perhaps some capex's I feel I could increase the rent by at minimum (based on local comps) 68%.I would offer 85% of list and estimated $20,000 in repairs/upgrades (this is probably a generous estimate - the property appears to be in good shape, basically needs a face lift).With all these figures, including the 50% rule, financing with 20% down @ 3.5%, I come out to a profit of $262 per unit and a cash-on-cash return of 9.53%.So, does this seems reasonable?

My question though is that if the most recent property tax is based on the previous sale price, if your purchase price increases dramatically then wouldn't you get a huge spike in taxes?

My initial strategy was simple, find and analyze Fourplexs deals in the Lexington, KY (or Bluegrass area) off of Zillow.

As you build your portfolio (you have to buy #1 before you buy #2) your income will increase, your net worth will increase, and there are always options to refi and take some cash out of performing investments to help secure the next deal. 

That approach is so very clear and simple.  :-)

You will find that increasing the purchase price doesn't result in an increase in rental rates.  

Good call on the money going down the drain while paying rent.Lakewood is a popular city and rental demand is very high, rents are increasing rapidly.Good luck!