As I am coming to see it, even an experienced appraiser would struggle to advise here because of the subjective value to the limited pool of buyers (as noted by Kevin).

I tell everyone that the market is less important than the team you pick to run your operation.Buffalo is a great market if you are looking for a lower barrier to entry and higher cash on cash returns.I would advise you don't fall into the trap of chasing the cash on cash returns.  

I would go on her site, check out all her content, and then schedule a call with her team.She's been doing it for decades, and can advise you on next stepsGino

However, @Bruce Lynn provided a great reminder to remember all of the expenses that could be included in your cost basis; again, a CPA advising you specifically would be the the best bet.

But for long-term rentals, I try to avoid advising people to collect a group of single family homes to rent.

@John Kunick, I live in the Eufaula area, south of Tulsa and I'm looking for a great CPA who is an expert in Real Estate tax planning and advising. 

A realtor advised me to list this property for $27,500.

Readers are advised to seek professional advice.

Please advise. 

Knowing you can do it the right way now, I would advise against it.If you convert it into a legal rec room, that would only be a half bath and the City may require you to have two covered parking spots (like a permanent carport).