You can also look at line of credit at home depot etc to help with materials then once work is complete pay it off with the HML funds disbursed to you.However some lenders want to see liquid cash reserves prior to closing so you still probably need some cash.Do you own a primary residence?

I bought my first buy and hold property with 8k saved up, I got a 10k unsecured loan from a credit union, and bought the materials interest free for 18 months with a Home Depot credit card that I secured after the purchase.

Whether you go to Lowes or Home Depo and your looking for material to fix a rinky dink shack or a multi million dollar mansion, their prices don't change. a 50k reno is still a 50k reno.

Rehab and RenovationsAside from the cost of the house, you will also have to spend for the cost of the rehabbing and renovating the house which also includes expenses for materials and contractors.

You can go along way on the materials cost estimation by going onto Lowe's or Home Depot's web page and shopping it out.Actually executing on the repairs can be very dynamic because of unit turnover, I recommend putting as much as possible into your operating so you can be flexible with expenses.  

@Wendy PattonNo worries, it wasn’t one of your courses I was referencing, although I have been wanting to check out your material. 😀 Could you please elaborate on what repairs you think the judge would deem ok for the tenant to perform?

They did the inspection. they brought in a chimney inspection company who said the chimneys were unsafe and needed a lot of work- buyer said they would take $12,000 discount in lieu of the work  They also had another item relative to the garage and they would take $8,000 and do the work- I'm a GC and fixed the small issue on the garage with my crew in a 1/2 day ($500 of labor and $200 in materials). 

Please fact check me because this is only my understanding of this process, and someone correct me if I'm wrong:When you depreciate an asset, you are writing off a percentage of the purchase price of the property each year to account for the natural break-down of materials (land cannot be depreciated).This process effects how much income you have on paper come by tax season, allow you to claim less income and therefore pay less taxes.When you sell a property that you have been depreciating, you incur what is called Recapturing.

But as stated we pay 25 to 30k for a lumber pac and trusses for a 2k sq ft home add in another 15k for framing.. we are at 35k right there before grading utsl concrete mechanicals windows roofs cabinets flooring etc etc.. so I know its all regional.in Charleston we built in the Historic district and that 2600 sq foot house cost us 750k to build.. using the materials that were dictated by the city.. it sold though for 2.2 mil.. so its all relative.. right ?  

If they rely on any other method...such as maintenance (marking up materials, labor, etc.), turnover costs, other excessive fees, or other methods to make their money, it will not turn out well for me.