Here is an update to an old post I had about my drive to Financial Independence through real estate. 

UPDATE: I talked to a mortgage specialist from WellsFargo and I was able to secure a 3.25% interest rate and 15 years at 25% down payment with zero origination fees.

It needs some updates (~15k), but a comp within sight distance of this property that has been updated is listed for $139,980, so I'm estimating my ARV at $130,000.

Reyna, what's the update?

Asbestos mitigation,Updated bathrooms and laundry, new flooring, paint, doors/trim, and windows.

Once he agrees and we close on the property - we fix/update (while still living on site) and refinance.

Arlington county has relaxed its standards for accessory dwelling units (https://housing.arlingtonva.us/plans-reports/accessory-dwelling-ordinance-update/).

Also, we find that the more often we're able to turn units, the more often we can make incremental updates and raise rents toward the higher end of market rates.In my opinion month-to-month makes up for any loss-to-vacancy since it's making up for it with higher rates and therefore helps avoid loss-to-lease.As a side note, we allow short term rentals of 3-6 months on new leases at rates of 125% of the 12 month market rate and have had great success with these options as well.Other options we've done are allowing tenants to choose their renewal rate on buildings we're aggressively raising rents on by say they can pay 3% increase for signing for another 12 month term, or 5% increase to stay moving forward on a month-to-month lease. 

And you would be spending more in demo and more to essentially build a new house versus updating an older house.All that being said, I am confused about your idea that the foundation is rotted and may need to be demolished.

Here in DC where most of my clients are based the city has recently updated to the 2017 IBC (international building code).