Every year you are one year closer to needing a new roof, new HVAC, new hot water heater.

The property has roof damage and a few cosmetics issues.

Let's assume that a new roof cost $6,000. 

The important things to find out before purchasing a property are, (1) is the roof in good shape?

More importantly, my borrowers never call me when their toilet is clogged or the roof is leaking, yet I still get monthly cash flow from that asset.

Holes in wallsBleach and grease on carpetingA dish installed on the roof of the house.Locks changed without my consentand..... you get my pointIt is a toss up, as to whether or not you charge them now or later. 

I for one like 2-4 unit multi families because you can get more units under 1 roof and still be considered residential.

JV With the Seller - Minor RehabDeal Details - Granny's House ARV $300K40 year old house - Free and Clear, good neighborhood, all major items in good shape, from roof to foundation to HVAC.Problem, the house is dated.  

It is a 0% interest loan that will do things like de-leading, windows, roofs, and other items to bring low income families housing up to snuff.Some towns seem to have a 15 year forgiveness clause built in.

Market desirability of the exact same NOI could decrease in half over just a short period of time.The cap rate is EXACTLY the same for two properties next door to each other but the one that needs a new $20,000 roof next year is NOT going to be as profitable as the one that got a new roof two years ago.