I went thru the house and explained to him the plumbing is shot , the electric is faulty , doors are too narrow , the boiler is 60 years old  good news is the roof is newer . 

The home was built in the early 90s and has the original roof and siding which you could probably guess need some love.

This property will require about $20k in work for a new roof and upgrades.  

What does a roof cost, how much life does it have left, what about HVAC etc... then back in those expense to your numbers.

He basically has two businesses under one roof.

Maybe like a 7 year hold to avoid cap ex for roofs and mechanicals.

Was just wondering if anyone has experience on whether it would be more convenient to use a Heloc to build and then refinance to pay off Heloc or just a standard construction loan to a permanent loan.A little bit of  extra info: -it would be our first build -it will be a full concrete build (roof too) -We have enough equity in one of our houses to cover the build cost of both builds if we use a HELOC.

With the 10 single-families, I'll have 10 roofs, 10 heating systems, 10 water heaters, and so forth, that can all be accelerated for depreciation calculations.  

@Jacque Sacramento Good morning Jacque, sure no problem: Michigan SFR Ranch: Purchase Price: $85,000 DP All in: $17,000 including a few repairsCurrently rented at $925 (3% below mkt)PITI: $550 Property Management: $90Vacancy 5%: $45Maint 5%: $45 Capx: $50 (will need roof in 10 yrs, all else fairly new)Net income: $145 (10% COC)Just got it appraised at $105k and in the process of doing a cash out refinance and purchase another property.

One of our Israeli investors was selling a home with a current 5 year tenant because he didn't want to invest in a roof replacement.