Let me give you a bit more information as I would really welcome your opinion (or others) on what order we should tackle the improvements.

However, the college studies helps to improve the ability to do the sale more perfectly.

They loved the improvements I was making to the blighted home and they all rolled their eyes as I mentioned the submission requirements and the design committee.

I've learned of properties that looked great outside, but had gutted rooms from buyers trying to make improvements on the quiet side.Dion mentioned contract terms.

My profit ratio has definitely improved since I first started this.

For the investors that use direct mail, how can I track the leads my letters bring so I can improve my rate of deals closed (working on getting my first wholesale deal done this month).

I plan to get a mortgage after 6-12 months, so my analysis will include those figures: Purchase: $87,000Reno: $30,000Initial Investment incl. closing costs: $120,000 ARV based on comps: $200,000Flip income: $40-50k (Reno would be nicer if I flip it, so rehab would go from $30k to$40-50) Annual figures: Gross Rent: $24,000 ($1,100 up unit / $900 down unit)Vacancy (8%): $2000Gross Income: $22,000 Taxes: $6,000Insurance: $1,200Repairs: $500 (fully rehabbed property)Realtors fee (for tenant placement): $2,000Total Expenses: $9,700 NOI: $12,300 Mortgage: $7,423 Annual Cash Flow: $4,877Cash ROI: 4.0%Total ROI: 5.9% I could improve cash flow by $2,000 by placing tenants myself.

Can I 1031 exchange into improvements on another rental property I already own as well as use capital gains for furnishing it?

There are other ways however to improve cash on cash returns other than buying in cap rate.

If the rents of $550/unit are market value for the area, then I would say this is a done deal, especially since you are local.At $35K and that rate of return, I wouldn't be miffed about an initial rehab cost to clear up some deferred maintenance and improve the aesthetics and stability of the property.