The only factor that I should clarify is that I would use cash on hand to add that additional bedroom (and remove an undesirable tenant), which I hope would add something to that valuation — I've read the 11% range is not unreasonable (*please comment on this, anyone who's done this before).

If there's an undesirable lot or funky house they can't move, they'll negotiate on it much easier than an owner occupant who has an unrealistic expectation and can't afford to discount.

If this area is less desirable, you will need to use comps only in the same undesirable area.

Well, the third bedroom in the basement may not be a “functional obsolescence” but in most cases it will be a “functional undesirable feature”.....it’s not going be viewed the same all bedrooms on the main floor.  

If you're looking for cheap properties your looking at some extensive rehabs in some undesirable areas.

My favorite statement is that a great operator will take an assisted living community that is undesirable in many other aspects, and make it successful.

It's also the only house on the block, so it's surrounded by empty lots and therefore undesirable.

For example, it could be in an undesirable or unsafe location, overpriced relative to the market, managed by a property manager or landlord of poor repute, or be substandard in quality.Nonetheless, if you’re more confident about investing in Chattanooga, there’s no problem with that either—it’s a solid market.

Unauthorised pet, new boyfriend, drugs, adult child moving in, undesirable guests, the list never ends.Section 8 generally have much lower social skills and standards and will often do things without understanding consequences since it will be you and not them that suffer.I equate managing section 8 to controlling a fire in high winds.

The reason you are seeing such a good "deal" on it is that they are undesirable and have smaller pool of buyers.