I use what Brandon Turner calls the 'BRRR method'. 

After cleaning/repairs are done, I send any remaining funds to the tenant with an itemized list of charges.

@JP MosesWhat methods are you using to locate distressed properties in Memphis?  

There are many methods used to find the market value of a property.

Nick, can you expand a little more on your methods?

I typically recommend planning $200,000 to $250,000 for an ADU above a 2-car garage, but creative construction methods, owner involvement, and careful selection of finishes can help to bring that cost down.  

There will also have to be seasonal maintenance activities such as cleaning of the gutters, emptying water out of the sprinkler systems, etc. to eliminate some of the weather related issues. 

You didn't even clean before they moved in?

HI Gloria,- yes 75% of gross - PITIA can be used when no tax returns exist like many have said above, however there are ways to "elect," to use this method of calculation even if  income/expense data is showing on the tax return.

Appliances included with the RentalMonth to MonthDirect DepositLate FeesPet FeesUtilitiesAssignment and SublettingNo SmokingMaintenanceEntry By LandlordExtended Absence By TenantTermination on Sale of PremisesLease Termination Provision for Military PersonnelTenant Assumes Responsibility for MaintenanceBattery Operated Device(s)FiltersSteam Cleaning CarpetsProfessional CleaningLandscapingHOAKeys, Garages/GatesDamagesRenter’s InsuranceBreak Lease Option (Buy Out)AlterationsPest ControlHome BusinessesAttic StorageRenting Site UnseenAppliance MaintenanceFees/ViolationsDuct CleaningPlumbingChanging LocksPlay Structures, Trampoline, Pools and Other Large Outdoor EquipmentRoommateAs-Is ApplianceGood Luck you are doing great.