I know it is alot, but I thought with a open schedule and possible ability to get this property at a discounted price it could bring in some return as I would have an easy tenant and location is perfect. 

As mentioned above, you can get a par rate at no discount points, but you can also get above par and get the lender to credit you to cover closing costs.

Here are my four main goals:Goal 1: Buy and Hold in Developing Areas (Texas)I plan to invest in underdeveloped areas where I see growth potential, buying at a discount now and holding for long-term appreciation as development takes place.Goal 2: Wholesaling Discounted Homes (Texas)I’m also thinking of wholesaling properties in those same areas.

I would not add much, a simple bedroom, bathroom, kitchen, and hvac.Another aspect of this deal is that the building is listed as a historic building and thus could qualify for some grants. 

We completely remodeled the kitchen and bathrooms.

The garden unit is non-conforming but fully equipped with 3 bedrooms, a living room, and a full bathroom.

I do the standard buy and hold but the property has to be bought at a discount - 85% of ARV is my maximum - including purchase price and rehab.

Put locks on each bedroom door so individual tenants have security of their personal belongings.You need a really good set of rules regarding shared common space, cleaning, kitchen use, bathroom use, etc.Be very clear about the rules up front, and selective about who you put in there.

We would have been better off discounting the rent 7% and finding tenants that would respect our property and rent year after year.  

And then looking for rental properties that you can buy for a discount and that cash flow too.