You bet you'll have maintenance in that type of the property and obviously will need capital expenses.However, let's count before these: $55K - $22.9K=$32.1K.Even before maintenance and capex it's 9.1%.The only advantage of this type is financing - banks will base the decision on the collateral and not apply the residential standards (more than 5units).SFR is better for financing after repairs - 75% LTV where V - ARVCondos won't be refinanced - you have to have cash.

@Anthony Dominguez I have never met a contractor or subcontractor that has ever given an owner that type of list.How it works is you receive a bid for labor and materials, and that is what he charges you.

Here are some recommendations for you:Find and connect with other BP members that are in your area: http://www.biggerpockets.com/meetSet up keyword alerts to be notified of the topics that interest you: http://www.biggerpockets.com/alertsRead Beginner’s Guide: http://www.biggerpockets.com/real-estate-investingIf you wish to tag someone in the conversation on the forum, type @ followed by their name and then select the name of that person which should appear below the comments box.

With dealing with this type of lender are these loan terms usually locked in, or can they be re-negotiated by the buyer?

I don't sell you anything but help you obtain property sellers and walk you through from evaluating the type of deal it can turn into all the way to close and beyond.Together we work on deals and learn the negotiating skills and the CF opportunities.

My Dad likes to buy these types of properties and turn them into rentals to collect the extra cash flow from the non-conforming units ... double bonus if it is in an area with college rentals (that tend to rent by the room) or airbnb.

Hello BP Communityi am new to real estate and looking to network with other investors, mainly house flippers and wholesalers but all types are welcome.

It would be nice to obtain some type of return while saving.

I have seen from numerous transactions we have done in the past, that some management companies will stick it to California and New York investors with their rates by charging "California" type prices whereas a Midwest investor will be paying a lot lower. 

But I think different people have different type of investment they are good at.