Reasons are as follows:- House will be easier to resell in my area than older homes- After about 20 years, houses need a lot of cosmetic and mechanical renovation, including roof replacement, HVAC replacement, siding repair, new fixtures, new appliances, etc.

If all the systems and mechanicals are old the repairs will eat up any expected returns for years if things go perfect with your tenants.The key question is if the previous owner did a lot of deferred maintenance and kept hoarding cash instead.The HOA doesn't mean anything.They can go defunct or increase the dues or add special assessments.I like to keep control of my investments so do not like deals like this where you are betting on an external party to maintain your property.

Many, if not most selling SF see the deal failing to close as a plus and design it to fail.

As a former civil/ structural/ highway design engineer - I love that analogy @Bill Gulley ! 

Home Depot offers 12 ft wide sheet vinyl flooring in updated designs for a decent price.

Corey has provided a sound answer.The key thing to understand is that lthe ender is going to set the amount of money they will lend you based on what they appraise the completed value of your project to be and the Loan to Value ratio they are comfortable with based on that appraisal.So you need to know what the appraised value of your completed project may be, figure out what the bank will lend you based on their current LTV, and then figure out if that is enough cash to *Buy the Property*Conduct all Due Diligence and Design*Aquire Permitting*Construct the Project*Market the Project & Sell/Lease & Manage DependingOh yeah, and you want some cash left over for you when it is all said and done.

One of the three websites is my own consumer brand in designer eyewear and jewelry.In June 30th, 2011 I moved to Atlanta from Chicago primarily because I wanted to build my second career and company in real estate.

Mechanically/structurally everything is sound and in good condition.

I am always working on projects on the properties to keep them looking good and mechanically maintained.

Nobody thought twice about a diesel mechanic wiring up 480 3 phase.