You have mortgage, taxes. insurance, repairs, management fees, etc, and hopefully a positive cash flow.

An example of the way it works is our hard money lender has the after repair value of our project appraised (say 300k).

Property managers also aren't as price/quality conscious when it comes to doing repairs/maintenance.

Just plan on doing some sheetrock repairs when he's done.If everything else in in order I would not let the electrical put me off.

Are any repairs needed?

The fule of thumb when determing a potentially good rehab deal is to use the 70% of ARV (After Repaired Value) less repairs method.

They will do repairs on their own and generally are pretty easy to deal with.

Are you overwhealmed with repairs?

Unless it needs repairs and will have a ARV of much higher.

ALWAYS assume you will have a 90% 30 year mortgage, just so you can compare apples-to-apples...and to that point:Taking the other extreme: Imagine that you have a house fully paid off, so that your only expenses are taxes, insurance, repairs, and property management.