When this happens on my rentals I just have contactors cut out the bad section, then they install Z flashing and replace with new T111.

To refine this point, in the case where you bought something for $X, as determined by the prevailing market Cap rate C and with an NOI of $Y ($X=$Y/C), then you proceeded to increase the NOI to $Z, in this case the result is NOT that you increased your Cap rate to $Z/$Y, because that is fixed by the market ... instead you just increased the market value of the property to $Z/C.

Everything has a certain degree of risk.The difference is the millionaires and billionaires take the most calculated risks possible and win more times than they lose.You cannot eliminate the risk only make it smaller.I agree on cash flow.Never pay based on POTENTIAL or PROJECTIONS.I can show you many developers that lost their shirts because they predicted x,y,z would happen when they built out their projects.In appreciation games it's a crap shoot.Some win and many you never hear about lose.Nobody wants to brag when they lose everything yet those are some of the most valuable stories to tell.I would also say with cash flow to watch out for CURRENT NUMBERS.

Phil Z. - my post did convey what you are pointing out, if you re-read it.

My previous brokerage allowed pay at close, but you have to follow all their rules, like submitting X, Y, Z contracts within 48 hours, and you have to use their preferred closing attorneys.

We never use Zillow Z-estimates or tax assessments to determine value.Regarding contacting the local person about the lead:  Contact that person and have him do the due diligence work @ a local level.  

The first part will say I considered these markets and chose this one because x, and y and z, and I considered all these house but think we should invest in this one because a, b, and c.

@Dani Z. 

@Jasmine Z.

Put stock in actual sale data and not their Z-estimates.