I followed the standard ARV x .7 - repairs = MAO, and it is turning out just fine.We ran into issues, like the house not having insulation (no way for me to see that until walls are opened up)Main water line had a leak (again can't see that until it's inspected which I had to close quickly)The ceiling fell in, the floor fell in, studs were rotted, but I overestimated my repairs and it will turn out fine. 

His recommendation to me is prior to renting your unit out, get documentation of moisture readings on the floors, walls, and air.

Here are some numbers for you all:Purchase price: 78,001Principal Balance: 72800.18 @ 4.25%- 30 yr Conventional loan through BBT; The home was a foreclosure, but purchased the home from HUD through an online auction, and paid 5% down for Conventional loan with PMI.Monthly payment: 628.16Home owners insurance: 1034.68 (Allstate- Estimated cost to rebuild is 166,851)Current Property Assessment from County: 97,100 for building and 26,900 for land: Total- 124,000Zestimate (if this means anything): 123,382Square footage: 2020 with 1526 containing HVAC (Electric) and a converted garage into a carpeted room with window AC, 2 old wall heaters, washer/dryer/water heater, outside door around 494 sq ft.

There's a small appliance store on 290 that had a campaign sign for a candidate covering the entire outside wall.

-Paint 2600sq ft of interior walls including removing wallpaper from 1 room.

I was planning on walling off one bedroom and building a hallway.

Do the curb appeal , to get the buyer thru the door , basement can be dressed up just by painting the walls and ceiling white and the floor gray . clean and neat.

Also I suggest you read the real estate sections of the New York Times and The Wall Street Journal.

There is a lot more I could say, but I didn't want to post a wall of text that many people may not read.

Is it a grading issue, wall issue?