Secondly, you will almost always get more bang (read: bigger rent increase) when you upgrade amenities (say new cabinets or flooring) between tenants.That said, in my books there are exceptions for long-term tenants.  

I shouldn't have said that it increases the cap by 1%, but just using that as an example to show how big of a difference it makes.This will double my # of units, so just want to make sure my numbers are tight.

Counties reassess property with significantly higher values annually, and local governments assume that they are entitled to a corresponding increase in spending.

We with encourage our Sellers to set up an Escrow account that we fund so that it makes the payments to their mortgage company on time every month.We have streamlined this entire “subject to” home selling process by creating a packet of all of the documentation required to complete these type of transactions, including all documents the seller would need to send their mortgage company, in an effort to make this home selling method as simple and straightforward as possible for our clients.

Additionally, with the City adopting the IBC 2015 and inspectors becoming increasingly difficult to work with, we've labor costs go up and soft cost on the design & engineering side go up as well.   

I am glad I was able to find that great price on the architectural shingles and my guys were able get it done quickly, I think it looks 100 times better than the 3 tab shingles and will increase the value even more. 

I thought it would be simple at first but now that I've found the link, I could use some help.

Its that simple.

This should increase my cashflow overtime.

Here are the key data points:Park info  Located in Alabama61 lots25 owner occupied homes18 park owned homes (14 currently rented; 4 currently being repaired and should be rented soon)18 vacant lotsAvg lot rent - $160 (unknown what the market rate is but it doesn't sound like there has been a rent increase in at least a year, maybe more)Avg POH rent - $400Expense ratio - seller claims 26% but I'm estimating 35% for the lots and 50% for the POH'sCity water - individually meteredSeptic - good condition (allegedly); a couple were pumped last year, none this year (no lagoon thank heavens)Seller claims gross income $130k, expenses $30k, and NOI $100kI calculated gross income of ~$135k, expenses of $60k (55% on POH and 35% on lot rentals), and NOI of $75kOther infoMom & pop seller, but park is listed with a brokerPark has been on the market for > 3 years (recent price reduction)Greater metro area stats look goodPopulation = 115kMedian home price = $105kUnemployment < 8%Household income > $40kHousing vacancy ~ 15%Closest Walmart is 7 miles awayFreeway is 1.5 miles awayNumbersMy valuation is coming out about $80k-$100k under the seller's asking priceWith conventional financing I'd be hoping for a purchase price of $500k, $100k down @ 6% over 20 years (not sure if this is plausible or not)Assuming that financing, I'm expecting net cash flow of $40k (after debt service)Upside potential is in raising rent and filling the 18 vacant lotsFollowing the same assumptions above, raising rent $50 (if the market supports it) would change NOI to ~$90k and net cash flow of just over $50kFilling the vacant lots could potentially increase gross rent up to somewhere between $150k-$200k, depending on what the appropriate occupancy rate is for the areaWithout verifying any of the above information (haven't offered anything yet so there's a lot of DD left to do), the deal seems to make sense.