The old growth trees which appear to be impinging on the house could be viewed as a negative in terms of potential damage to the house in a wind storm and to the foundation / basement over time.How does this house's square footage stack up against the comp.'

The concept isn't really hard but it is time consuming.

My opinion is you should take the things being told to you with a grain of salt because that person sounds like a real negative nancy.

That would make the building itself a liability not worth owning.If we, as investors, value cash at a 10% return then for every 100K in equity you must deduct $833 off of the rental income as a first expense to account for the income generated by the opportunity value of your equity.You then deduct all other expenses, including debt repayment, from the remaining rental income to determine the true positive (or negative) cash flow generated by the property itself.

I would find sellers who were in tax sale, foreclosure, tired landlords, estates, commercial buildings, vacant houses, vacant land, lots and would work on finding owners of expired listings - my approach to them was NOT - let me steal your potential equity, let me make you a low-ball offer - let me let you continue to hurt from your negative experience in real estate - NOPE - my approach was tell me what you want to happen, where would you rather be - how can I help you solve your real estate and financial issue - let me make you some suggestions - no charge - no fee - free.

@Derrick Thomas, did you eventually find funding and continue with your tiny house idea, or did you abandon the concept?

The danger here is that you have built in "negative" equity in the property.  

There are so many individual variables... time available, income, cash available, market, end goals, personality, etc etc...Learn the concepts and strategies.

I believe they are still in startup mode but it is an interesting concept!  

So for instance, if the duplex thing will negatively impact occupancy, don't do it.