I use 0.6% of replacement value for my annual premium estimates on SFHs and it hasn't burned me yet.  

Talk to neighbors and ask they keep an eye on property and you will find a great new neighbor to replace the problem ones.Cutting corners when unknown occupant in Bar area of CA is not a good risk / reward.

Replace 12 light bulbs: $604.

We then become their "lender" for a few years while they continue to improve their credit and financial picture.That said, here is what I find when I take back the home ( read: evict and/or they move out before the lease is up): new 50-60 inch flat screen TV boxes in the garage, DirecTV set tops in all bedrooms ( that they do not live up to the original agreement with DirecTV and return the rented boxes), all of our original lightbulbs replaced with odd, irregular, different color bulbs in most of the lamp sockets ( a 5 socket light fixture that we installed with the correct bulbs will have 3 bulbs at most- none matching - why?!!)

Also - while the numbers pencil out- I would be very careful during the inspection period to look out for any potential headaches - at $115/ mo cash flow - that gives you $1,380 a year - not bad to put in your pocket - but one A/C unit replacement or a new appliances could wipe out all of your gains.   

Repairs depend on a lot of factors, like the age of the building.My first duplex was 100 years old, and I had old galvanized pipes (that usually need to be replaced after 50 years). 

I realize it may need piping, coils replaced as well. 

Instead, our civil engineer is handling the permitting/approvals on the planning/tract map side and our architect will be handling the same for the building & safety side. 

Be suspicious of replaced plastic  plumbing at the hot water heater and under sinks.

Has anyone tried the following strategy: (i) use own funds to build or (ii) buy below market value + rehab; in any case resulting in a total cost of about 80% of market value. Once the property is ready and rented, ge...