However, I'll bet it will come up when the property is finally sold in a more conventional sale.  

Other issues like a broken window or leaking skylight are not big items, however, I did not expect to see this in a 'total rehab' property, 'ready' for the tenant. 

I still have the home inspection and the sum total of my estimating knowledge is bro science and I’m reading J.

http://www.har.com/content/newsroom/Houston Real Estate Highlights in October Single-family home sales continued their post-Hurricane Harvey rebound as volume rose 7.5 percent year-over-year with 6,381 units sold;Single-family home sales remain 2.8 percent ahead of 2016’s year-to-date volume;Total property sales increased 6.6 percent with 7,614 units sold;Total dollar jumped 10.8 percent to $2.1 billion;The single-family home median price rose 3.9 percent to $226,491, which represents an October high;The single-family home average price increased 2.7 percent to $285,858, also the highest level for an October;Single-family homes months of inventory grew year-over-year to a 3.9-months supply, but is down from a 4.3-months pre-Harvey peak – the result of a surge in consumer demand for housing;Townhome/condominium sales rose 5.8 percent, with the average price down 1.1 percent to $195,393 and the median price down 3.1 percent to $153,000;Leases of single-family homes rose 13.6 percent with the average rent up 2.8 percent to $1,776;Volume of townhome/condominium leases jumped 34.8 percent with average rent up 2.9 percent to $1,533.HAR still encourages anyone who has housing available for temporary occupancy (up to 12 weeks) to please post it on our Harvey Temporary Housing page at www.har.com/temporaryhousing to provide housing to those in need.

Here is how it would look:Purchase Price:  $90,000Plus 6% Seller Concession:  $5,400 (this means $5,400 of the closing costs would be covered; no cash out of pocket by the purchaser).Minus 3.5% Down Payment:  $3,339 cash out of pocketTotal Financed:  $92,061P&I Payment at 3.5% interest (FHA offers pretty favorable interest rates):  $413, then add PMI (probably about $55), taxes, and insurance onto this to get your total monthly payment. 

Totally not crazy.

Totally not crazy.

Most banks will require between 20-25% of total costs of the construction project (including land, building costs, permit costs, soft costs, etc). 

By rent default rate, I mean number of months defaulted over the total number of months rented out.

I currently have a few properties, and with the market appreciation in the DC metro area, I have about $100k equity in each property I own (four total, nothing compared to what I read on here), and as such I want to continue to build a buy/hold portfolio, but at same time I'd also like to have some money available in case the market takes a turn, in order to be able to make some moves.