Make offers on both properties at a price point that makes sense for you to make money and considers the cost to renovate & the vacancy rates.

My main concern is the cost of turning the property into a MTR especially with this being my first property.

I paid close to asking, I didn't need to negotiate, it was listed at a great price and I knew this property would be in high demand.

PS: I made a mistake on the Cash to Close section.

The contractor will be your best resource to understand cost of the design; the earlier you identify value engineering opportunities, the cheaper it will cost to incorporate (Google: ‘Macleamy Curve’).

If the property can be respectably sold for $250 you have to be all in at around $200 including the commission and carry cost.

Replacement cost.

Next, figure out how much the entire rehab will cost and contrast it with the possible rental income.

The cost per unit is actually below average for Reno and maybe bit high for that location. 

They’re in an area close to Dallas but not Dallas proper.