Another thing to check are the reserves and how they budget their funds.

@James Storey Ok thanks that helps a lot@Joe Villeneuve I completely forgot about the golf budget!

What's your reno budget?

First place to start is to really evaluate your personal budget.

I am calculating my 50/30/20 Rule/Budget (Needs/Wants/Savings) and I am having difficulty deciding where to allocate my Kids Education and Daycare costs...

Lease is to expire mid June and he is not sure he can afford to renew for one year and wanted to explore options.Other than not increasing rent, switching to month to month, the "until further notice" does not give much to budget and plan. 

Repair budget of $16 per month is 1 service call per year with no reserves to paint between tenants.

However, like everybody mentioned before me, those houses needs full updates.Especially mechanical and electric service upgrades.Most likely, they work on older wiring.If you don't update it now, it would be fine, but if you decide to change it to central air etc... it will not be enough to support the new system.I would budget everything, and make smart upgrades.

What is your estimated construction budget? 

Even if doing replacement of some big ticket items upfront I would still budget a minimum of 5% for each of them especially on a higher end property such as this that requires good upkeep. 4 of the main benefits of a buy and hold property are below and just because you are not getting all of them in the same property does not mean that particular property is a bad deal, but for a property of this value it is too expensive for the relative returns provided.- Cash Flow- Appreciation- Principle Pay Down- Tax Benefits