While I'm fairly certain that is above any repair limit you might have set with the PM, I'm also fairly certain that it qualifies as something the PM knows must be fixed immediately whether you authorize the dollar amount or not.

It would appear that putting money into the place in terms of flooring, new kitchens/baths, or the like at this juncture wouldn't yield much return so I think you are wise to keep your repair costs low.

It comes very close to the 24% gross annual return (2% guideline) using the higher repair and lower rent figures.The 50% guideline you brought up is to make an owner aware that 50% of those gross rents you collect each month will flow back out in the form of various expenses (taxes, property management, repairs, replacements, legal, vacancy).

Depending on your experience level though it might make sense to flip 2-3 houses first to understand how to deal with contractors, lawyers, lenders, agents, etc when the stakes are lower.Even though apartments are commercial properties, getting some of the basics under your belt will result in 2 key benefits:You will have a good idea of estimates for normal repairs to the units and can better understand what properties will take once you purchase them to bring them up to your desired standard for the area.Your potential investors might have more faith in your performance if you have some other investing experience under your belt - might even want to consider getting 1-2 rentals to help with this "resume building" if you are going for a number of investors that may not have personal knowledge of your capabilities. .

This solid base includes being financially sound, repair and maintenance knowledge, and landlord/tenant law knowledge.

You make offers based on what the value is and what repairs you determine upon inspection.

Chandra,I will preface this with saying that what I think may be an inexpensive repair, someone else, possibly yourself may think it would be expensive.

That' said, rather than tie up traditional bank funds I can use for other deals or bring In the PL funds which is 12 percent for the entire purchase and repairs what's the best angle ?

I've been looking at the pre-foreclosures and foreclosures on the BiggerPockets Marketplace, but haven't scheduled any viewings or called about any of the properties to find out the condition they are in or any repairs that may be needed.

There is some situation in their life that is creating motivation (health issues, financial problems, job loss, death in the family, divorce, etc.) that results in the desire to sell their house quickly for cash without making repairs...