No active leaks noted yet but they may be a concern. there is an old inground pool that is a liablity but I would plan to rent a jackhammer, push the smashed concrete in, and fill the rest with dirt and throw some seed over the top.Broker did not have access to environmentals or appraisals because the bank bought the property back before foreclosure. broker seems to imply that the concerns are deffered maintenance and estimating capital requirements for roof and windows. broker also implies that seller will not accept less than $800k.cash flow is currently negative due to being poorly managed IMO. the budget includes items like $1,800 for telephone when a phone cost 25-30 per month. the bigger kicker is there is an option to either rent with no utilities included (at rental rates quoted above) or to pay an extra $100 for water and electric included (units have central HVAC included in electric).about 40 units have opted into this program giving a budgeted utility rebill income of around $4,000, the problem is that budgeted electric is over $4,000 and water is just over $4,000, and not only that but in September the electric bill was more than $8,000.

The biggest expense I tend to overlook when plannig a rehab is the hardware (nails, screws and bolts can get up there quick) and other necessry items like caulking and construction adhesive.

If you are holding for 5 to 10 years or longer what you put in for resale even though it may be nice will be outdated by the time you go for retail sale.In that case you will need to redo anyways before putting on the market for retail sale so you don't want to spend a bunch of money now.The other item to factor is what do other rentals in the similar rent range offer as far as finishes??

If the area is good the other items can be fixed.If the area is bad it doesn't matter what you do.You could make it the nicest building in a bad area and the tenant calls you get from the pictures once they see the area and other buildings they won't rent from you.Then you are left with the type of tenants living there now.Also is to check on how big of a loan balance is on this property.This landlord might have tons of deferred costs because the debt service is taking all of the cash flow.They can't evict the current tenants because they have no money to rehab the units.You also need to know the eviction process for the area.Even if you get a writ the marshals office could have hundreds to serve that month and a 4 day process takes 6 weeks for them to come out.Even if you account for lost rent when buying to evict these tenants you will not know what kind of damage they will do before you get them out.John do not believe the seller or the brokers agent.This might be a deal but only at the right price.The seller cannot command a premium and dump of problems at the same time (unless the buyer is a sucker or a first time purchaser which sadly sellers hope for).

"It's going up for auction (starting) at $50,000"These two items should make you stay away from a meth property.Making a bad investment can wipe out your other good ones when starting up.Don't go out of the gate too fast too soon.Let someone else make the mistake of overpaying at auction.

And the other items, as Bienes Raices said give you firsthand knowledge that he is not a tenant you should approve.

Be sure to do a hold open on the purchase, which will reduce your title insurance costs when you sell.I didn't go through the math item by item, but the calculations look about right to me.

., audit a return and assess an additional tax)6501(c) lists exceptions:6501(c)(1) False return - no time limit for false or fraudulent return with intent to evade tax.6501(c)(3) no return - if no return was ever filed, there is no time limit.6501(e) If the taxpayer makes substantial omission of items in the return, the time limit is 6 years.26 USC 6502 Collection after assessment - the IRS has 10 years, from the time tax was assessed, to start collection efforts.

I can see how the tenant would want to get paid as soon as they got their last item out of the house.

All of the items you mentioned would be deductible.