Removed 44 ft if interior load bearing walls to open up our 4b 3b ranch.

@Paul SchanbacherThat bow is the wall yielding to the pressure /push of the soil and water on the outside.  

And now that I want to sell I want to know how much responsibility I will bear for all of their misdoings. 

Taxes can be a bear in this area, which might damper your passive income, but rehabbing a property that you buy cheap might not raise the taxes based on a newly established ARV.Areas also make a difference. 

These will all have bearing on what type of strategy you will utilize and if it is feasible or not.  

Bear with me here.$2.6m less $520k DP plus $39k closing costs = $2.119m$385,095 (GSI) less $19,255 vacancy allowance = $365,840 Gross Income$140,778 Expenses (not incl. vacancy allowance) (from seller's FY 2015 P&L)NOI = Gross income less expenses = $225,062CAP = NOI / price = $225,062/2,600,000 = 8.66%Cash Flow = NOI less mortgage = $77,560COC = Cash Flow / Cash Investment = $77,560/$559,000 = 13.9%Total ROI = Cash Flow + Appreciation (3%) + Accrued Equity / Cash InvestmetTotal ROI = ($77,560+$78,000+$74,495) / $559,000 = 41%Vacancy Allowance = $1605/mo (already accounted for above)Maintenance Holdback = $1605/mo (already accounted for above)If there's something funky about these methods, let me know.

I was looking for deals in the Houston Texas area, primarily in northwest Harris County ( Cypress, Fairfield, Bear Creek ).

Also bear in mind that should there be an HOA then quite a few major line items are covered by the HOA (which of course doesn't mean that there then might not be a special assessment around the corner...).

Crazy clay soil-  so most homes need or will need foundation repairs/maintance.You actually water the foundation like a lawn. 

Same soil additives?