It may cost you a lot more than $100k, depending on how old the property is and whether it has ever been updated.

The seller was moving to NY and wanted an as-is sale right away, but wanted to have the ability for his family to stay in the house for 2 months until school was finished.The house was pretty nice, just needed a cosmetic update inside, and the roof was shot.

@Allen WuCongrats on purchasing the unit; thanks for keeping us updated on your progress.  

Me and my husband visited the properties very early this morning to get updated pics and found most had been vandalized and some even had squatters who made it clear they weren't leaving without a fight.

One of the upper units went vacant and needed an update (flooring, paint, etc.).

Find out How and When they do updated assessments.

Would love to hear if anyone thinks these numbers / assumptions are wildly off or too conservative.Acquisition CostPurchase Price = $200,000Closing Costs (at 2%) = $4,000Due Diligence (at 1%) = $1,500Up-front Renovation Reserve = $5,000Total Acquisition Cost = $210,500Financing:20% down payment = $40,00080% loan (likely a major lender, traditional 30 year loan) = $160,00030 year term @ 3.2% (educated guess with very solid credit)Monthly Expenses:Mortgage Payment = $691.95Property Taxes = $120Insurance = $55Property Manager (soup-to-nuts) = $159Other Variable Monthly Expenses = $40Capital reserve monthly deduction = $37/month (5% of net income withheld for capex)Assumptions:3 months to renovate / update post acquisitionProperty rents for $1,400 / month (and assuming a 3% annual increase)20 day vacancy assumption = 5.48% vacancy rateTenant takes occupancy month 3Annual expense growth rate of 3%Expected / Target Returns:Monthly IRR (w/ financing) = 15.48%Monthly cash-on-cash return (average over 5 years) = 2.79%Monthly Net Operating Income (year 1) = $798Capitalization Rate = 4.79%Kyle

Updated plumbing, electrical, windows, replaced crumbling steps and added sprinkler system.

It's a 100amp panel for a small unit and I don't believe any updated wiring is needed.

The more turnkey and updated the lower the allocation versus a property that is in significantly poorer condition.