@Chuck King / @Justice CannieIf you're buying distressed and fixing them up to add value then you can achieve up to 2% rent-to-value ratios based on your cost basis.If you're buying in like-new condition (little to no renovations) then your rent-to-value ratios will be lower, often around 1% in the right areas and in balanced markets.Keep in mind that all of the above is a scale that is highly market dependent.Continued success!

I just recently found out that the air conditioning condenser unit may need to be replaced at one of the properties I bought a few months ago.

You have to look at current market conditions and not assume that recent appreciation will continue into the foreseeable future.  

The tenant is back from a mental health stay, threatening neighbors at 4 AM, etc.

The tenant has a right to expect the house to be in relatively the same condition as it was when they signed the lease minus a little bit of wear and tear.

You have to compare size, condition, specific neighborhood and street, to get an idea if it's a good deal. 

Size, type (sfr, condo,) price, possible rent amount, condition, etc.

@Leigh Ann SmithWhat a great question, especially in Texas where property taxes are a major expense (I know, everyone thinks they are high and its all relative.I would figure if you get the taxes lowered due to condition, they will be watching to raise them when you complete the rehab. 

The money was conditioned on a checklist that I gave them prior to the close that detailed what the exact conditions of each of the requirements were, "broom-clean, free of debris, all seller-owned appliances left in good working order" etc.Many of the tenants, knowing that the bank would likely evict them in a few months anyway, were cooperative enough to leave the property in "not-horrible" condition.

Here's my process on determining the health of a HOA.  1.)