But be real careful with this strategy by the time you pay points and interest on your rehab loan two closings refi costs.. many times the amount of equity you garner is NOT anywhere near what you think it is and you spend a lot of time and energy and RISK instead of just buying a rental.. your going to have to have significant CASH to pull off a HML you can just use that cash for a down payment on a ready to go no risk finished home. ??   

Structural issues, terrible smells, no HVAC, Plumbing, electrical, walls, ceilings, etc... wood rot, termites, asbestos, you name it!

Water and electricity can really add up.Rental license - I think this is $55/year in Philly right now.

@Melissa Perez there are increased costs across the line for some building materials, but not others...lumber is a bit out of control right now, but electrical and plumbing fixtures still cost the same, etc.

As for the team, I will put more energy into that as well.

Prices are a bit higher but there is a large demand for jobs between the Sub Base, Electric Boat, National Guard, casinos, etc.

I have dealt with every CAPEX project under the sun (foundation repair, roof replacement, sewer line and water line replacement, electrical overhaul, full cosmetic renovations of interior units etc.) and stuff you are not expecting or budgeting for is going to pop up. 

Even if submetered you'll see most active rentals only charge electric and gas if you take a look at your competition.

The units have heat pumps and the tenant pays electric which makes my cash flow great and I have no maintenance calls.

For reference I am working on a 3 family full rehab, plumbing, electrical and light framing of closets and doors.