I would rather make a mistake and learn from it and improve than not do anything because of fear of making mistake.If you really don't know of something they ask you about, just tell them that you will have to discuss that with your partner and you will get back to them on that.

The houses aren't in the best neighborhood and the seller makes only the improvements needed to pass inspection.

Within one year from the time an asset is acquired the value is "book value" the cost of acquisition plus the costs of improvements.

Example: purchase 3/1.5 SFR for $37K, add $8K in repairs/improvements (~$45K basis), and rent for $850-$900.

Any suggestions about how we could improve?

Do not close out lines of credit, especially the "good" ones, with lower balance ratios to credit extended for the sake of trying to improve anything.

We are planning to lay down new tile throughout, paint everything, stain kitchen cabinets, and just some small improvements that are needed.

More details needed- however, here is the approach I would take.If dealing with acreage, I would look up and see what the average price per acre are in the area, and add on the value of the home and any improvements to the land (well, septic, etc) as well as fixtures (garages, sheds, etc).If dealing with subdivisions, pull comps from MLS regarding larger lot size with similar size homes.Good luckD

@Jon Rylander - I'd suggest looking at a 5% down conventional loan with PMI and using the extra money you have to make improvements and add value.

My partners & I bought these buildings in a state of high distress at low prices, and have been continuously & incrementally improving them over the last 8 years.