Here is my break down given your numbers-170k 25% down 4.65% interest fixed over 30 yrs.42,500 down; loan for 127,500taxes 800 annual, prop manager 10%= 2400($1k/unit) 2k/mo x 12= 24k gross24k - (800tax, 2400 PropMan,= 3200)= 20,800 NOI20,800/170k= 12.2% Cap rateLoan Constant 6.19%Spread 6.01%Annual Cash on Cash return 30.38%Annual debt service= $7889.24Break Even Ratio= 46.2%Debt Coverage Ratio= 2.64Actual Return after all expenses= $12,910.76/yr(900/unit) 1800/mo x 12= 21600800 tax, prop manager 2160/yr= 2960 expenses18640 NOICap Rate 10.9%Loan Constant 6.19%Spread 4.71%Annual Cash on Cash return 10.96%Annual debt service= $7889.24Break Even Ratio= 50.2%Debt Coverage Ratio= 2.36Actual Return after all expenses= $10750.76Not factored into this is any repairs (but given the remodel it should be nominal) and vacancy.

Here is what I came up with. 180k @ 3% over 30yrs= 758.89/mo or 9107/yrTotal interest over loan is 93,199+ 10k for initial repairsRents 875+900= 1775/mo x 12= $21,300Insurance= 800/yrTaxes= 1,800/yrMaintenance= 1000/yrTotal Expenses= 3600/yrLoan Constant= 5.06%Cap Rate= 9.83% (9.31% if 10k put into rehab)Spread= 4.77% (4.25% if 10k put into rehab)ROI= 85.9% (10k for rehab)NOI= $17,700BER= 59.65%DCR= 1.94A DCR of 1.4 is your minimum, so at 1.94 you are looking good.

So long as you don't have to do any repairs that will suck up your spread, it sounds like a pretty good lease/option deal. 

I'm not sure your market but I know my dad really isn't looking at deals with less than a 100K spread.

On my team I need a title company, a few realtors spread through various areas in So Cal, a real estate attorney, and a money partner.

Our real dollar spreads for flips is smaller than the coasts though.

1000 a year reserves pays for a new HVAC every 12 years, roof every 20 years, appliances every 10 years and painting the exterior every 12 years. 1000 a year in admin pays for my accounting and an employee to manage the property when spread across a 100 homes. 30k houses are usually 800-1500 sq ft so not sure why reserves would be so high.

If an investment/property yields 8% and you  borrow/leverage part of it with 5% money, you increase your coc since you're making the spread on the borrowed money.  

Scott Yancey just licenses his name and is obsolved legally as he only has a "personality" contract and does not really have anything to do with the program.However - can't even watch his show for entertainment purposes due to his connection.Stay away and spread the word.

So, if YOU start the demo by first turning on the air conditioning so that your crew can work in comfort well, now the airborne spores are being drawn into the HVAC and spread throughout the entire house.