In both of these cities, four of the top five source cities are higher cost.

My real estate CPA has done several cost segregation studies for me and my clients.  

A good PM will keep you out of trouble and typically make you more money than they will cost you.

Just be aware of the rules wrt rehabbing since some require you to escrow funds for the rehab amount (that is if you are doing rehabs).  

The intent is torefinance them once I am done with the rehabs and I want to stay clear of theseasoning restrictions often seen on conventional loans.

I didn't know the 70% (and then subtract out repair costs) rule.

I think it works for a great buy and hold rental situation, but it is probably a class C neighborhood and you will need to put a lot of money to rehab a 1950's property to get it rent ready.

@Bob Asad investors in high-cost areas do this all the time, but I wouldn't.They are betting on both value & rent appreciation, but it is speculation.

There are also additional costs of operating and maintaining an LLC, like separate bank accounts, annual report filings, tax filings, etc.2.

I would like to find out what are some good websites with calculators you use to calculate rebuild cost, so I have a better idea which replacement value is reasonable.