Purchase price: $123,000 Sale price: $250,000 Updated this 3 br/ 3 bath tri-level home - replaced siding, roof, deck, sidewalk, garage door, front door, all interior doors, all cabinets/granite countertops, all new tile in 3 full baths, new paint & flooring.

I estimated rehab at $90k, but estimates have come in at closer to $105k--the house needs everything except a roof. 

If I go by the 50% rule it doesn't seem to be a good buy but seeing as the tenants are  paying for all utilities I would thing the 50% rule may not apply.The duplex has the original furnaces with central air, roof and appliances.

HOA $- Cap Ex and Ops $300.00 (my minimum is $150/month/roof.  

I do have a 3 unit building on a main st. in a small town and ins. for that property is $114/month.My insurance guy has always used the hail damage situation.....replacement coverage would get me new roofs while cash value policies would mean a big out of pocket expense.

I saved over $20K using this tactic and also got a new roof. 

This poses a few problems: 1) we always seem to be competing with one another. 2) There is no standard of care between the buildings, both of mine have been re-roofed and re-sided, other have the 1970's wood siding rotting off. 3) We compete with rents, and it has caused some owners to say that this is their worst property.  

All new HVAC and roof.

Just don't make a promise you can't keep - ask them to hold the financing for much longer than you expect to need it.

(foundation and roof) It is relatively flat has a creek at the back of it.