However, you have to take into consideration the overall size of the bedrooms, the size of the whole living space, and any areas that could be used as sleeping space.

If its in a good neighborhood it might increase its value on a long term basis. 

Alone with increasing the number of rentals I also have got in better neighborhoods so better rents.

Here is the opening paragraph of Bulletin 012:"Property Management means the physical, administrative or financial maintenance and management of real property, or the supervision of such activities for a fee, commission or other compensation or valuable consideration, pursuant to a property management agreement.

Take that seriously to increase your chance of success.  

Use seller financing to hold the note to increase your profits, not sell the note to lower your profits.IRR would be the best way to calculate your ROI.

If this becomes a long term tenant, you just established/allowed 2 things to happen:1 - You just established a lower rate as a starting point, with all rent increases to them coming off this amount. 

Chukwudi, we manage several homes for out of country investors and there is a fair amount of considerations both initially as well as afterward. 

Also, the 40% estimate may be low, as you would increase your gross income by $100K and could easily move tax brackets.

The asking price for the home is 132k.OPTION 1 – Cash After Repair Value = $132,000 (estimate)Discount 80% of ARV = $ -26,400Repairs (Price per square foot) 1,190 x $5 = $ - 5,950Cash Price (seller pays closing cost) = $99,650OPTION 2 – Sandwich Lease Option – “Perfect Tenant Program” Term: Minimum 5 yearsOption Price (buyer pays closing cost): 125,500Option Consideration (non-refundable fee we pay you): + $500Monthly Rent: $950 (profit + $100 cash flow per month)Total profit (If completed full term): $132,000Note: We are the tenant-buyer, but we will sub-lease the house to another tenant-buyer.