I in VA but not familiar with that market, but just wanted to chime in to say a purchase price of $380K to achieve a $2K rent is terrible.

They usually say a building will run around 35-45% expenses. 

Make sure your inspection report is on point, and if something needs to be done in the near future (say a roof) you need to add room for it in your budget. 

if they are not working for the lender, then they dont know what the lender will say. as i said, lenders have different risk tolerances. they also have an incentive to recommend that the tank be taken through closure. have you discussed with the lender? 

For example, the individual recently (say a year or two ago) looked out-of-state at a property but the bank told them that they were not eligible for a FHA loan to purchase it as they lived in another state, with their job being the "proof" that they did so.

Now let's say a buyer comes along a few years later and pays $50,000 more than what the seller paid for it.

I’d say, as a contractor, that 80k estimate looks a bit light.

You saya) the price is $667kB)the seller is paying 5% of closing costsC) your putting down 3.5%So if the appraisal is $700k or $667k your result will be exactly the same.You’ll pay $667k, the seller will give you up to $34k towards closing costs (WHICH SOUNDS REALLY HIGH),  and you will put down your $20k downpayment. 

I would say a Class C plus not a D but closer to B than D

Do realize many times you might have to take what they say as a grain of salt.