@Matthew Paul Hey, so the property is a foreclosure and has been winterized, but your saying I should still account for those costs when rehabbing?

Just a preface, I am a former Accounting & Finance recruiter in NYC and have experience with real estate companies. 

., @Marcia Maynard, and Account Closed,I agree with you all, but I have been hear from my other friends/landlords that their realtor make the tenant pay fix amount so that the home warranty can cover the rest.

Originally posted by Account Closed:@Harrison Sharp   Unless your family member is the kind of person that would have a prepayment penalties you should be fine. 

Have you ran the numbers on each deal to account for the expenses?

Account Closed: I sure wish I could afford a duplex but the market here in the Denver area is just way to expensive and the feeding frenzy going on doesn’t allow any good deals to stay on the market. 

If you'r using quickbooks you can classify it as an income account titled "Utility reimbursement" and post it as other income on your taxes so it's not just lumped in with "rent"- this will help you realize actual rental income. 

As of now, I'm only baking in $5000 in my calculations and I need guidance if I need to account for the bump (if any).

I also have about 150k primarily in stocks.I have 35k in retirement accounts and about 65k in a inherited ira I can use when ever.

@John Knisely it is possible, but not probable.According to the latest numbers I could find, 7% of all agents account for 93% of all transactions.