Purchase price: $225,000 Cash invested: $70,000 Sale price: $353,000 Reconfigured first floor, gutted basement, new HVAC, new plumbing, new electrical, new baths and new kitchen.

Fresh paint, floors/carpet, plumbing repairs, electrical repairs, soffit repair, vapor barrier in crawl space, all sorts of stuff!

Water had ran from the 2nd floor so I had to redo the ceiling on the first floor, redo the floors, new granite counter tops, SS appliances, and had to redo the basement.

I received a quote of about $6k to get it rent ready (clean/pest/paint/flooring/landscaping/garade door).

My capex budget includes roof 25 year life span, floors 10 year life span, appliances and hot water heaters 12 year life span, hvac 20 year life span, bath and kitchen remodel 20 year life span.

The building has three floors, the third floor houses the bathroom and bedroom of the second floor 2nd unit. 

Don't try to grab the proverbial falling knife until it has actually hit the floor.

All the units need flooring/paint.

A tenants dishwasher craps out and damages some flooring in the house.

These are the conditions I use when evaluating a property -- whats my cash return, what's my cap rate, does it hit 1% rule, will I get my money back before my balls hit the floor, etc.