What material would you use to fill/fix those holes?

Some advice:Hacking a house you lease or have an option on doesn't give you the authority to make improvements, you may have building code issues and the owner or contractor will need to pull permits.It was mentioned you do that at your own financial risk.Since a Realtor is involved, they may very well advise (and rightly so) for the owner not to allow improvements made from a handyman investor, they will be concerned about the quality of work and so will any lender and appraiser.Contact the insurance agent, most policies allow small improvements to be covered along with liability (not workmen's comp) but generally materials on site will not be covered.

As materialism continues to grow, we accumulate so much stuff we don't need.

Most builders are cost plus meaning they tack on a percentage based on the cost of materials.  

Right now it looks like you would have a cashflow of $9245 but you are missing so many factors like you're going to be living in one of the units which is going to take away from that number also are you going to do repairs/maintenance if so you still need to put something in there for material if not you need to budget for that altogether which eats into that money.

I have found the podcasts, blog posts and learning materials to be extremely insightful! 

I think that the reason that the separation is not more dramatic is that new construction represents a significantly higher percentage of townhouses than with single family and the rising prices are at least partially attributable to the rise in material costs.The situation in Salt Lake and Utah counties is quite different as townhouses represent an entry level price point that is becoming rarer and rarer in detached single family houses.  

I buy materials for upkeep on about 8,000 units and 4 rehab projects per year (which means I get to spend about $10 million of someone else's money annually!). 

I learn a lot from all the materials you guys showed me and I really do appreciated it!

Interesting posts.I haven't taken any guru courses or purchased that kind of material, but what I have noticed is that most of these gurus are not real estate types by that I mean they don't really know real estate, they are marketing folks who selected real estate as a product line."