You need that to cover any repairs or cleaning that the tenants would be responsible for (in case they don't take care of it).

In fact what many of them do is slap cheap carpet and paint and change a couple of fixtures and call it new.

At the time I didn't know much about them since we had just purchased the property.After they moved out, we discovered that there was a severe infestation of bed bugs and cockroaches and the carpets were soaked through with dog urine, among other things.

Here are the numbers and estimates so far: Property Type: Two-family, side by side, 3 bed / 1 bath each (vacant)Location: Honesdale, PA Ask Price: $77,000Buy Price: $70,000Closing Costs: $3,341.45Estimated renovation costs: $25,000ARV: $120,000Taxes: $1,840Water: $1,200Sewer: $1,140Maintenance: $500Insurance: $1,611Miscellaneous: $600Rent: $750 / $900 (tenants pay for gas & electric)My plan is to put in new bathrooms & kitchens and clean up the rest of the areas.

. $150 per night, but I pay for all utilities, tv/internet, furnishings, linens, cleaning, and even coffee).

It's in a great neighborhood, but the home is 3300 sqft and needs a lot of work, almost a full gut.I saw a guy go inside as I was walking down the street.. apparently he was helping clean it out.  1st person I've seen at the home in all the times I've passed it. 

I bought a vacant lot one time, believing the prior owner, I just searched their records and all clear. 3 weeks after we closed and I was clearing the property, I received notice from the city the there were $22,000 in demolition and clean up fees from the owner before the person I bought from.

I can never get grout to look clean no matter how much I scrub and bleach it.

-Every single carpet had stains all over it (most came out with professional carpet cleaning except the paint and bleach stains).

I'm not talking about a small problem- I've had notices from the county that weeds were out of control and given me deadlines to clean them up to avoid fines.