Many contracts will include a clause that essentially says the Seller cannot make any material changes to the property before closing.

At one point the building inspector suspected that the property may have had a hazardous material underneath the flooring.

Not to sway you in any direction, however, I typically recommend that the first deal be a light cosmetic rehab that will cash flow accordingly.

Find a Resource yard nearby to source used materials and rent tools from.

Just like the old saying, labor is double or so of the material cost.

Replacement costs are routinely much higher than the purchase price for most C class apartment buildings here in the Chicago area due to the high quality of the original building materials (brick, oak trim, hardwood staircases and doors, etc). 

Has anyone had to challenge them for shoddy rehab work and tested the 1 year guarantee for defects and materials?

We plan to go with a BRRRR strategy using quality but not luxury materials, so hopefully can attract good blue-collar tenants.Seems like the property manager is really key, both to maintaining the rental certification and to screening for quality tenants.

Based on his conduct, your hassel, your time, work and materials, you having to protect your interests and limit your potential liability, half is not out of the question in my mind!

However, if there is on-site management, it may be difficult for the taxpayer to materially participate because: 1.