My first one the kitchen had nothing in it - it was gutted - and the floor had a hole right through to the ground.

It'll be owner occupied.So here's the poop:150y/o brick 3 story. 2000 sq'Needs: New roofpartial gut8 new windows (4 "historic" inserts)9 repaired windows2 new exterior doors and 1 rotted sill replacement.all new plumbing (3 baths 1/2, full, 3/4)mostly new electric (if only to sleep better)new furnace (though there are two on premises)A/Csome refinished floors, some carpetnew kitcheninsulationframingdrywallWe'll also want to deal with a concrete patio that's draining water toward the foundation before it causes problems.The place is in a transitional neighborhood (i.e 1 block away $300k homes and $150-275K condos, but plenty of ratty joints too).

ORRehab all to the fullest, and maybe use the back building as a in-law house..ORDemolish back building, and use the floor as a nice basketball court or tennis court, keep the big shop garage and modernize the outside, tear the front house down, and build a new house on the remaining foundation, with attached garage, and second floor giving a total of around 2,500 sq.

Getting a ground floor opportunity to watch how he handles his investments.

However, I don't think rents will decline greatly since the dorm rates at the university will set something of a floor.

This would give me a relatively safe monthly repair/maintenance budget for the home itself (roof, windows, walls, flooring, plumbing, electrical, etc).

I'm a little confused about how the depreciation works on items that don't last 27.5 years, such as flooring, appliances, cabinets, etc.

However, I viewed a 2/1 home that was renovated, new roof, flooring, paint, ac, etc for $26k that rents for $425 and is currently occupied.My old town is only 90 miles away and I'd be up there at least twice a month and would have a property management company manage the properties.

New rental developments commonly have things like:[list]Nearby shopping or multi-use buildings w/retail on ground floor and lofts above.Nearby parking and extra storage available.Wireless Internet.Upgraded [fill in the blank]Ready access to public transportation or vouchers/subsidiesLaundry in-unit[/list:u]I have no idea what the market is like in your area and it does seem tough right now all around, but it might be worth looking at what you have (or have not) done with your rentals and see if you are still offering something competitive.With the explosive growth in RE investments, many by newbies who spent far too much money upgrading rentals, there are both more rentals on the market and they're in better average condition than before.

Worst case, you buy one that's ground floor with a patio instead of a balcony, but if it's basement, stay away.