.- Adjusted Purchase Price/ Max Bid: $210,840.80- I start with the 1% rule (thus why I start the analysis by looking at rent) and then adjust the price based on the potential pay-out from a cash-out refi and equity position on the property- more on this in a second. - Potential Investor payout (15%): $242,466 - Rehab total: $76,480.00- I just used $40/ sqft for an estimate.

I have been having some success negotiating seller paid closing costs to help with rate buy down as well. - If you see a property that makes sense, I encourage you to get an offer in ASAP.

New construction may be an option, many builders are offering rate buy downs and closing cost assistance and then you get quicker appreciation when they continue to build out the community.

I saw a lot of potential even though there was much deferred maintenance, poor mgt. and significant water damage in one unit requiring complete rehab.

With a calculation being on a deal by deal basis you'll need to go in depth with costs VS profit with both scenarios and timelines. 

Your costs are fixed and so you probably can't provide discount financing. 

That's three months of mortgage and utilities, the cost of flooring, and the cost of painting.

I choose the calendar year I pay in based on where I am with deductions for the year; if I'm already maxed on deductions I hold the payment until January; that gives me potentially double deductions that year. 

As long as you have proof of mailing you're okay on the time (not when she receives)  If you end up spending less to clean then you may have to refund some of the cost. 

For that reason, I am looking to purchase a duplex or a single family with either an existing ADU or potential to add one.