., AC units stolen, pipes and wiring ripped out, window broken, door kicked in), significantly more challenging tenants, and neighbors whose actions reduce your property value (e.g., building code violations, drug activity, squatters, loud music, loitering, littering).

I double-checked what I entered in the BiggerPockets rental calculator:Vacancy 4% (1 month out of 24); CapEx (3%, no basis); Repairs 2% (assuming just some carpet refresh during turnover and maybe paint refresh), plus insurance $30 per month, 10% PM fee, property taxes $70 per month.

One is almost fully updated with a new kitchen, new flooring and paint throughout, and the bathroom has a new vanity and fixtures.

After a long drawn out eviction of a SFH on Long Island NY, we needed to have some work done (painting, new light fixtures, patch some holes, and basic plumbing, such as a new toilet, install vanities with faucets, and new shower fixtures.

Making changes to the property without written notice (Changing Hardwood Floors, changing a brand new set of washer and dryer and various other paint jobs in the house) Today I get a message from him saying that the remainder of the rent will be paid on Tuesday (since Monday is a holiday). 

I had to argue with her that painting is directly expense-able and does not need to be depreciated.

I grew up with Heinlein's quote, "always ask the experts, they will tell you what cannot be done and why- then go do it"  Anyway, we are doing a rehab and I hired a guy on the spot who I met serendipitously- I was going to do a painting job that night, stopped off at the lawyers, and there was a painter there.Anyway, wound up hiring him to redo the bathroom.  

--------Overall, we generated quite decent walk-in equity ($36K, 18%), and cash flow rate of 0.95%..We rehabbed mostly the interiors, we left exterior paint and windows, to make the numbers work.Here are the numbers:Purchase: $130KHard Money Cost: $8KConstruction Cost: $24KClosing Costs: $4KTotal Acquisition Cost: $166KARV: $202KRent: $1570 (0.95%)Walk in Equity: 36KBefore:After

I am hoping on our next deal they will come down on interest a bit.Ok, so here's what the house looked like before we bought it:So far, we have painted the exterior, all new vinyl windows, new exterior doors, new garage door and opener, installing French drains and a sump pump due to there being a bad ground water issue in the crawl space last spring, new roof, opened up the kitchen, put in a french door, replaced all the wood flooring, tiled in bathrooms, framed in laundry and mechanical, shelves in the pantry, all new interior paint, heated flooring in master bath, can lighting.

Then we'll rent the property up and enjoy our monthly cashflow for the years to come :) This deal is unique because it's lipstick flip (interior & exterior paint make up 80+% of our renovation budget).