You need to have a good contractor assess the repairs and give you a better bid.

Is there a special assessment on the horizon?

Section 604 (a)(3)(E) & (F) of the Fair Credit Reporting Act allows this for a potential investor:item subsection “E” says…Intends to use the information as a potential investor or servicer, or current insurer, in connection with a valuation of, or an assessment of the credit or prepayment risks associated with, an existing credit obligationIn addition, subsection “F” says…Otherwise has a legitimate business need for information in connection with a business transaction that is initiated by the consumer or to review an account to determine whether the consumer continues to meet the terms of the account.The full document can be found here; http://www.consumer.ftc.gov/sites/default/files/articles/pdf/pdf-0111-fair-credit-reporting-act.pdf

Think about the risks investor B would be taking, being so far away and visiting once or twice a year to physically assess situation.  

COMP 2 COMP 3 COMP 4 COMP 5 Distance from Subject 433 Ft 106 Ft 220 Ft 1.7 Miles 1.7 Miles Last Sold date NA Last Sales Price $465,000.00 $286,000.00 $305,900.00 $420,000.00 $465,000.00 Building Value $109,800.00 $158,500.00 $99,300.00 $120,100.00 $195,400.00 Land Value $204,100.00 NA $203,100.00 $203,400.00 $233,700.00 $205,600.00 Xtra Features Value $6,000.00 NA $1,500.00 $0.00 $300.00 $24,100.00 Assessed Value $319,900.00 NA $363,100.00 $302,700.00 $351,400.00 $425,100.00 Zestimate $347,000.00 NA $325,000.00 $300,365.00 $385,000.00 $450,000.00 Price / sq. ft.

Most towns re-assess on a schedule so eventually yes the value will go up.

Expenses:Prop Mgmt (@10%): $63/moVacancy Loss (@10%): $63/moRepairs (@10%): $63/moCap-Ex (@10%): $63/moTaxes: $76/mo (at highest, based upon current PVA assessment, which is way high)Insurance: $75/mo guesstimateTotal Expenses: $403Property would need $3,000-$5,000 to get rent ready, including appliances.

Those are the hardest to assess.  

Revenue:$1650/month (assuming 1 month vacancy/collection loss) for year 1Expenses:Mortgage: $518/month assuming 30 year fixed rate mortgage at 4.25% Taxes: $4300/annually (could probably appeal lower)Utilities: $75/owner pays water and sewer Insurance: $75/monthRepairs: $1000/annually Outside Investor Equity payback: $115/month (estimate)Net Operating Income: $426/month, $3460/annually Cash on cash return: 20.58%2.0% rule: 1.60% (very high for deals I've assessed in NJ that aren't $40,000 run down and need $15,000+ of work)Unlevered yield on cost:  NOI/Total capital cost $3460/$103,138 = 3.35%Levered yield on cost: NOI/Total equity $3460/$16810 = 20.58% Could probably refi it after it appraises for more than $150,000+ and get 75%+ LTV, all my cash out of the deal, but then have a higher mortgage payment so less cash.

Can you give me some advice on finding a good area and assessing a property to invest in.