He is an investor and there is no way he would sell it with any type of profit margin attached... that’s just not how investors think (not a bad thing, since you will be thinking the same way later when you sell it). most new construction doesn’t make sense from an equity or cash flow perspective - the benefit usually is in holding its value for the next 15 to 20 years and the avoidance of maintenance issues. 6% or 8% is very low for a state like Texas (or any other state with similar home prices) That would be good in CA of example of you are banking on appreciation. if you feel comfortable - you can go after a fixer duplex : where you build equity with renovations and potentially get your capital back by refinancing afterwards (brrrr ) A cosmetic fixer (paint - kitchen- bathroom remodel) would be good for a beginner. you could also explore purchasing as a primary home: that way you only put down 4% to 5% (downpayment ) If the “intent” is for you to live in it, you could do that and if life changes in the future after 6 months - you could simply rent both out (since your wife does not want to house hack) Some of my clients also fenced the middle of the lot (assuming the units are detached ) and then you would mot be privacy issues but just treat the tenants as neighbors (never let them know you are the owner ) you are always the a manager collecting rents. :) 

If the changes are structural (involves the structural walls, foundation, or similar) the underwriting is more complicated than if it is just remodel the kitchen, paint, etc.The Liability covers your exposure as the owner of the property. 

I am wondering what investors in the general Louisville, KY area are paying for both bathroom and kitchen remodels in multi-family properties for labor alone.

We remodeled the 100 year old Spanish bungalow and turned the living room into an extra bedroom, took down a wall in the kitchen to open up the floor plan, and added french doors off the dinning/living room to give it an indoor/outdoor feel.

We do occasionally do some small repair type jobs but we don't do remodeling on investment properties.

Being in the early stage of our business I wanted properties that only needed light remodeling.

My husband and I have done some business with Spectrum Rebuildng and Remodeling.

We were overly optimistic about finding a replacement home given lack of inventory in our area, higher purchase costs, remodeling done on previous home and agent+ closing fees. 

I found a great 4 bedroom place that was fully remodeled at a great price.

Full Kitchen and Bathroom remodel.