I might be inclined to make this purchase were it in an area that I expected growth/appreciation, but without that I think the return is too skinny. 

The biggest changes will probably be in parking requirements and zoning for Townhome, rowhomes and skinny minis.

What I have been doing for a long time now, shortly after becoming an auctioneer - is a system I call Control and Roll – this is a process of using Power Prospecting to find a property (FSBO’s, Expired Listing or commercial property) that has a potential equity profit – negotiate an agreement with the owner so that they profit as well, offer a skinny contract of sale.Our contract offer has all the disclosures necessary, the right to market by auction and a profit agreement (Hybrid).The next step is to advertise the property for a few weeks and offer it by public auction.

It started as an emotional purchase as it is the house next door and I didn't want to see another tear down/massive tall skinny plex go up, but it has cash flow.

Control the property with a simple contract of sale, right of possession and right to market the property and assignment rights and delayed settlement techniques, make sure you put a clause in the skinny contract of sale that lets you out if you can't assign the building.Schedule a public auction. 

Thank you for the kind words - at 75 years old now - I remember years ago when this I became motivated to invest in real estate (really -  my motivation was to make money and quick my low paying job)  I use to take every class and seminar on real estate investing and would read as much as I could all the time about real estate investing -  that is when I was 21 years old, some of the information was junk (seminars leaders trying to make money selling courses and useless information)  and some were really great, but at the time I didn't know what I didn't know, I finally got the nerve and courage to go out and try some of those crazy formulas they were talking about - and guess what - some of those far out creative financing techniques started to work for me - it was really scary because I started to make money - more money than I ever thought was possible with my limited formal education back than, I discovered I made more money than the president of the company I worked for - needless to say - I quit that job and devoted more time to making offers and collecting those large assignment fees - now even today at my age I continue to make offers - at this time the offers have lots of zeros in them ---- so all that good and useless education  paid off.You best teacher is the market - get out there and make offers, look at 50 houses - but don't make offers on those properties until you find the one deal that is absolute right for the profit making - just keep good records - listen to the sellers, do your comps, learn how to write "skinny contract offers", practice "Control and Roll" principals of controlling real estate with no money and assign your contracts using accelerated sales methods. 

Remember, timid landlords have skinny kids (not my saying but one I like).In Colorado, having a contract to purchase is having what is known as "equitable interest".

Duplex, 2 car garage, skinny drive way, fence, and concrete slab for parking.

its almost easier just to hope people can decipher what you wrote.I use an iPod myself and I agree the spell check sucks in fact do you know a way you can shut it off because it annoys me?

:) Deal is way too skinny for the effort, but it was awesome how you're trying to work it.I say buy it from the other guy at $275K (ensure you can raise the additional $15K Rehab + $4K closing costs, and have enough $$ in escrow to hold for 6 months), tell John "you'll do your best to help him out," tenant has to leave (OR... pay him $20K to relinquish his option... you're still below the $296K max mark), he's out of the picture.