A $2000 roof could be installed in a $500 per month property, or a $2000 per month property, for example.

The property mainly needs roof and HVAC work.Thanks for your input,Ian

The property mainly needs roof and HVAC work.Thanks for your input,Ian(Note: I posted this in the Creative Financing forum but soon realized that this would be a more appropriate forum)

Project took too long.

@Stephen Waldroup I know you haven't seen the property as of yet but do you have any idea of the condition of the big ticket cap ex items like furnaces, roof, windows, etc?

@Jim Growfer think it's okay to use the 50% rule to quickly gauge NOI and determine if a project is worth deeper analysis. 7% interest is high and yes, that would be a bad deal if you only netted $10k on a $2 million purchase.

So repairing a roof is expensed but replacing is depreciated.

What is the roof like?

Tell us about your project. 

There's also a lot of potential appreciation on the horizon: the city is supposed be building a greenway on the block, there are a lot of construction projects in the neighborhood and a lot of new, high-end condos have recently completed construction a few blocks away.