That makes their cap rate at 10%.How much really does the house factor into all of this, it cant be 50%.

But with maybe 15 year service life here in FL, age really isn't a factor for these unless your looking at brand new builds.The biggest thing to consider, in my way of thinking, is the neighborhood.  

Most properties that old have done the majority of their settling, unless it is on a hillside or some other factor that could make it worse over time.

Look for deal killers like higher than expected taxes, or owner paid water sewer bills need factored in.

Hi @Ryan Sullivan, I'd say the biggest determining factor in this is your market. 

If you are planning on doing repairs yourself remember to factor in your holding costs and the longer you hold the more risk you take in a market change.

I didn’t factor much for my capex because honestly, as nice as the cash flow is, I probably wouldn’t touch it for a little while and just let it build me a savings.

One of the biggest factors on insurance premiums is something called an insurance score.

If you can work that in, the time frame is short, but the wealth building factor is immense.  

One additional factor is that in high end, fast appreciating markets like ours, buyers do tend to pay a premium for high end finishes and the promise of "trouble free" living (i.e. no repairs).