I've guessed at the rents ($650 / mo conservative per unit) based on our local market, etc. 

Start extremely conservative.

There are a few large buildings on the market owned by the same owner that are fully priced with no movement to little movement on sale price.When refinancing, the banks/appraisers usually undercut your value to be conservative.

More conservative lenders may cap DTI at 45% or even 43%.  

I am using far more conservative numbers for my property; I am self managing but usually do 10% for management, 10% for CAPEX, 8% for maintenance, 8% for vacancy; these are percentages of the gross monthly rent (for this property, its $1900 rent income per month).

Therefore, it is much wiser to go into the deal with a more conservative estimate to cover CapEx (10%).  

Just my 2 cents but I always go conservative in my estimates and run an analysis of what needs fixing and how long it will last - heating systems, hw heater, roof, appliances, carpet/flooring, plumbing fixtures etc

Interesting  idea but I'm always leery of 100% mortgages...but im always on the conservative side of things.

I said 200k for renovations but that’s Uber conservative so all in yes. 255k building is already vacant and down to studs. 

(e.g. contiguous)- Comprised of 4 parcels:P1 - 70 acres with 2250sqft 200yo house and 20yo barn.P2 - 35 acres with under conservation easement.P3 - 5 acre minor sub division home lotP4 - 5 acre minor sub division home lotSITUATION- Seller is 70yo and retiring in 2019- Seller has heIrs who are absent and uninterested in owning the property (will eventually sell inheritance)- Seller is a frIend and neighbor of the famIly- Seller (and our famIly) have preservation/non-development hopes for land in the neIghborhoodOUTCOMESFor the Sellers:- Immediate cash lump sum (property needs some work)- "Guaranteed" monthly/annual payments for deal term- Retain ownership and occupancy of real estate until they vacate- Seller retains ownership if buyer defaults- Continuity of neighborhood legacyFor the Buyers (us):- Acquire property rights- Fixed sale price- Known caretaker/occupant- Continuity of neighborhood legacyDEAL OPTIONS- $450-500k sale price- 10% down- 20 year term- 0% Interest- Land ContractThis seems like a good option to consider in terms of managing tax impacts to both parties, but at the cost of fewer “ownership rights” for both parties.- Seller FinancingThis seems like a good option to consider in terms of better “ownership rights” for both parties, but at the cost of trickier tax implications.