sorry about the typos I can actually spell water and renter ha ha....where is auto correct when you need it?

If the house i under water you may have some trouble re-financing it immediately, but there shouldn't be any rush to refi, unless your buddy needs to decrease his DTI to buy something else.The difference between a good deal and a bad deal are the numbers. 

Sub 2 is definitely something to look into but this property is so old and so far under water not sure about this deal.

It's into this that I plug 'actual' repair costs, etc...The property I just purchased (for the purpose of hold & cashflow) had completed since 2010 the roof, windows, siding, electrical, plumbing, including hot water tank, new service from BC Hydro as well in the last 4 months a new bathroom, floors, fence and completely repainted.I know that the envelope (roof, etc..) will now last 25 years, the hot water tank 7-12.

Water connection fees to city or county , gas electric application fees , architectural/ engineering fees , .

Its 3 bed 1bath units, that currently rent for 575 a side, owner pays water/sewer, tenant pays everything else. about 900 sq ft a side.

Sale price: $40,000Rent: $1100 ($65 paid by tenant; $1035 paid by Section 8)Taxes: $3200 per yearInsurance: $900 per yearWater: $60-75 per monthMonthly Maintenance: unknownCap Ex: needs a new water heater within the next year; has a newer roofI'll get an inspection.

Oh well, water under the bridge. 

-Roof - roof has a leak -Tons of water damage - mold is horrible in the basement- Walls are all beat up with holes everywhere( looks like their was a royal rumble in the house) - Kitchen ceiling is cut open- bathroom shower wall is ripped open and ceiling of shower is cracking- windows are leaking - kitchen floor is buckled up from water damage- Both upper and lower deck are in horrible condition( i was honestly afraid to walk on it) - Outside molding around windows is cracked and damaged- all outside lights are broken- carpets every single one is ruined- Bathroom sink is shot- Kitchen cabinets all have water damage- And again ill say their is a big mold problem so i have no idea how much that will cost.The condo has 6 rooms , 2 bed rooms , 2 full baths , 1 half bath 1280 sq ft.

Finding a lender that will close without turning water on (hubzu policy) has been challenging to say the least.I read somewhere about some people just turning the water on in their own names (buyer name) for inspections/appraisals.