Often these are rented by the room with individual leases for each occupant which cuts down on the risk.

If there were a total loss on Day 1 of the property, I would essentially be cut out a check for 171,000 (minus my deductible), even if I did not plan to rebuild, because there would be no depreciation.

It's like selling computers when you have no idea how to cut it on or plug it in.I think that one thing a lot of new investors don't understand is that wholesaling and rehabbing are a great way to build capital but.......what is the end game?  

Their's was a lot better shape, but the previous owners were really hands off and let their property manager cut a lot of corners so I did have some work ahead of me.My wife convinced me to list and show the unit myself instead of turning it over to my realtor as we usually do.

 :) My daughter's issue, and now mine, is that the landlords have known for years that the unit didn't cut it.  

Or at least cut the costs back?

If investors could do all those things, why don't they and cut out the middle man?

I allot 5% to vacancy, 5% to repairs, and currently 10% to capex I'm putting 10% to capex now although when I do quit self managing, I will be cutting that back to 5% which is the average reserve for the quality, and then take a little hit on the cashflow when bringing in property management. 

I like handling my own repairs with my own contractors as I can usually cut costs or at least have more control on bigger ticket items and overall know what I can expect.  

He says he doesn't have time for it, dumping it out of his portfolio, willing to sell it for his cut (3,500) acting as a wholesaler i guess, and for the cost of the back taxes owed the city, now at 11,000 dollars.