That being said, if you are looking to invest in some of the older properties you better take a hard look at CapX as any major repair will take a big chunk out of your cash flow.  

The biggest obstacle so far has been obtaining repair estimates. 

The estimated market value is $120,000, minor repairs need.Owner: She owes $90,000 on the mortgage, she rents it out for $1600 and has a cash flow of $445.

Owner asked what kinda numbers and terms I might have to offer..My interest for it is I'm closing on a 4plex directly across the street thats the ugly one on the street.. numbers on this are $130k purchase $10k in repairs, gross with range from $24,000-26,400yr once vacant units are filled.Can someone somewhat draw out how a completed seller finance deal might look with numbers on the $250K 6plex?

This is a program where 1st time home-buyers who make at or under a certain % of the area median income (say 80% or less for example) qualify to apply for the grant, certain banks receive grant funds so you would need to ask your bank if they participate in this programRehab costs: $40,000 (lot of sweat-equity)Appraised: $385,000NEW PITI $1785/month: Refinanced into a loan of $260,000 ($325,000 with 20% down, 30 year fixed rate portfolio loan @ 4.375%) and pulled out $61,000 ($260,000 minus $191,00 owed on old loan minus $8000 closing costs) I could have taken out a higher loan (due to the appraised value) and received more cash-out $, but I wanted to be conscious of what my new PITI would be and make sure I could cash-flow going down the road.DetailsBefore Renovation- 864 sq ft - 3 bed 1 bath ranch style home, , attached 2 car garage, 1/3 acre yard- Purchased foreclosed for $220,000 with a 30 year fixed rate loan @ 3.875% - PITI $1385/monthI worked with my local bank to build in renovation funds into the actual loan, where I would pay to have work done to improve the property (new roof, heating system, flooring, etc) and the bank would inspect the work then release funds to me to reimburse for the cost of each repair as they were madeAfter Renovation- 1278 sq ft (finished basement added 415 sq ft)- 3 bed 2 full baths- Appraised Value $385,000The first 6 months in the property was spent doing new roof, heating system, refinishing existing hardwoods (hidden under grey shag rug), new SS appliances, new paint inside and out, finished basement (added another living room, office/bedroom, and full bathroom)For the refinanceI was quoted by my local bank for a 30 year loan a 4.875% interest rate. 

I take it everything is disclosed ahead of time that one will be renting out the unit to someone else ?

@Andy Grabis  Hi Andy, that's awesome you are planning out that far ahead.   

Is there a formula for that similar to the 0.70 ARV - repairs -fee?

In the amendment and in this exact wording we requested "Buyers requests that all work be done by licensed professional/reputable company and copies of all work-orders/receipts for repairs" and "All repairs should be completed on or before 7/16/2018" .

She has roughly 20% of equity in the home and it would be a lot more if the home didn't need repairs.