It wasn't until I cleaned out a shelf that I found boxes and boxes of overdue bills and notices from collection agencies (unopened) that went back months before.   

I took some time to simmer down and also let him collect his thoughts.

Thank you all for your collective wisdom.Steve

Here are the two analyses: Initial Investment Purchase Price $89,000.00 Closing Costs $2,225.00 Renovation Costs(allegedly turn key) $3,000.00 Total Investment Costs $94,225.00 Financing Costs Down Payment (%) 20.00% Down Payment ($) $17,800.00 Mortgage Balance $71,200.00 Annual Interest Rate 4.00% Loan Term (months) 360 Total Invested Capital $23,025.00 Fixed Monthly Operating Expenses P&I $339.92 Financing Charges $0.00 Administration Fees $12.50 Property Taxes $197.08 Homeowners Insurance $111.86 HOA Fees $0.00 Fixed Monthly Total Costs $661.36 Variable Monthly Operating Expenses Property Management $157.50 Advertisements/Referrals $65.63 Vacancy & Collection Losses $131.25 Capital Expenditures Replacement Fund $50.00 General Maintenance Fund $50.00 Temporary Utilities $10.00 Pest Control (Optional) $0.00 Lawn Care (Optional) $0.00 Total Variable Expenses $464.38 Total Monthly Expenses $1,125.74 Annual Operating Expenses $13,508.86 Operating Income Monthly Market Rent $1,575.00 Annual Gross Revenue $18,900.00 Monthly Profit (or Loss) $449.26 Annual Net Profit (or Loss) $5,391.14I present to you such a thorough analysis in the attempt to make sure I'm not making any glaring mistakes!

It's my understanding, and how we calculate it, that if the carpet was brand new when they moved in, you can charge for the remaining useful life of the carpet, so if they've been there more than 5 years, no matter how damaged it is, it is past its useful life and it would be extremely difficult to collect anything if challenged.  

Mark,I can tell you the Texas Legislature is looking at several bills this session regarding short term rentals and whether local cities can collect various taxes from short-term rental property owners.  

An example I can offer directed towards marketing firms is in El Segundo called: El CampThe idea would be to collect like minded entrepreneurs working as real estate agents, investors, developers, contractors, title reps, lenders, equity investors, wholesalers, appraisers, you get the picture...I look forward to any and all feedback!

My home insurance write an estimate for the water damage.Replacement Cost Vale                                            $19,000Less Depreciation                                                       (2,000)   ------...

The land is 5 minutes from my families home in SC so even without that the Property management is minimal but they will be handling all the rent collection and anything else that may arise.

I like to think of BP as a collective brain when it comes to RE.