The property itself needs repairs which after having my contractor take a look he gave me a rough estimate of $55k.The property is listed at $175k and similar homes (in mint condition) in this area sold for $300k.

I had a couple properties like that and I sold, just to avoid the constant calls and repairs.

I would try breaking that apart and including it in the applicable expense category (PM, CAPEX, Repairs, Vacancy, etc.)Overall though, I wouldn't be too excited about this property.

You can deduct legal fees and repairs, but not lost rent.

@Daniel Winsor Just make sure the language regarding the roof repair being tied to your required performance are Clear, not vague.

Start with gross rents, then subtract vacancy, prop mngt, taxes, insurance, utilities, repairs, capital expeditures, etc.

It seems to me accepting bids for a rental would only benefit the landlord in a very competetive rental market with low supply/high demand where you might find high quality renters willing to oubid each other just to get into a place. 

(ARV x 0.7) – Repairs = Maximum Purchase PriceMe and partner are looking at an off-market townhouse that needs 150k of work and has an ARV $1,100,000. (1,100,000 x .7) - 150,000 = 620,000620k would be the max purchase price thenIt rents for 6.5k/month, property taxes are 10k/year---a decent 1%erI ran the numbers thru the rental property calculator with putting 20% down and get conservatively 10% CoCWe believe the property to be a good deal.

Most lenders don't consider an after repair value, and most appraisals don't list an after repair value, which makes me think you're not applying for a conventional loan.Did you already remove the appraisal and / or financing contingency before you got the appraisal back?

Even if you repair the foundation, you will have to disclose it to the end buyer, which can scare them away or reduce the value.