The main criteria to evaluate this is when did you complete the start-up phase and became actively engaged in business?

, it's still highly unlikely that an appraiser would have given value to this bathroom in any case, so we're not losing anything from an appraised value standpoint.Seller should be more than OK with it once you educate them on the fact that of all the offers they are evaluating, yours is the only one willing and able to execute a plan to close on-time, without delay, in spite of the flagrantly illegal and unpermitted bathroom.

I think that could be dangerous if people are not careful in their evaluation. 

Understand how to "add value" to the property and evaluate cap rates, IRR, cash on cash returns. 

Creative ApproachesIf the organization is hesitant about a sale, consider proposing creative terms:Seller Financing: The non-profit could retain an income stream from the property by financing the purchase.Partnership or Lease-Purchase Agreement: Offer to lease the property with an option to buy, giving them time to evaluate the relationship.Donation or Support: Consider including a donation or offering support for their mission as part of the deal.

Do some smaller dollar private lendingA property is too capital intensive and $20k will not get you very far.You also did not describe what level of risk you want to take, so that is something also to take into consideration when evaluating where to invest.

Of course, there is no absolute right or wrong answer, you really should evaluate what is right for you and your family at this time and in the future.

When buying a laundromat, it’s crucial to evaluate the financials carefully.

Would it be worth seeking a free consultation with a real estate attorney to evaluate my case?

With most auctions the buyer cannot get into the property and evaluate its condition.