It may sound harsh, but if they can't afford to buy in their own backyard, then frankly they can't really afford to live there, rent increases will completely price them out of living there sooner or later, and their best course of action is likely to move somewhere where they can afford, or change their financial habits such that they can afford it, or both.

So if I say that a dog would be $80 a month extra, would that be too harsh?

@Scott Lepore - The problem with not having access to MLS data is the harsh realization that all comps are not created equal.

Sounds harsh, but its training your tenants that you are not running a charity. 

This is a fact, not an opinion:).Anyway, don't mean to sound harsh.

Ouch that sounds harsh. have a drink and brush it off. 

Hope I didn't sound too harsh.  

I explained I wasn't interested in "taking a ride up with him", the home has been uninhabited for nearly 6 years in a harsh ND climate, it has some mold and minor water damage, some asbestos tile, the tax assessment for mowing and snow removal annually is 1200$ not including all other associated carrying costs and that I already have a relationship with the home owner and they are willing to amend the purchase agreement and close... easy peasy.  

Since the question is being asked by the originator I also assume you have not bought notes before, as I am not aware of any experienced note investor who is not licensed who does their own servicing - not to sound harsh but trying to let you know what can go wrong

Lots of people have suggested ways to build capital, or even ways to buy real estate without needing capital.This will sound harsh, but until you take it to heart you will not be successful in real estate.