It's been on the market for less than a week.Here are the stats:List Price: $450,000Annual Taxes: $10,500Units: 2Rent Est Unit 1: $1500 (i would live in this unit)Rent Est Unit 2: $2500Putting down 20% I estimate my PITI to be $2,771 (at 4.25%)Positives on this property:Located in an "up and coming" part of town, where the town is in Phase 3 of a development programThe second unit is two floors and has the bones/access to be split into two separate units with relatively minimal investment (basically adding a kitchen).. pending zoning approval of courseMy concerns are that while the property certainly has potential, the current rent rolls are a lot more attractive in the 425k range than 450k.Any thoughts/advice would be appreciated.Thanks!

 (1) There is plenty of meat left on the bone (actual quote) and (2) if you send the borrower a complete package of all docs, weighing say five pounds you will " shock and awe" him into paying on the note.  

The bones and utilities already exist so that saves you from having to deal with government officials who just want money for every little thing you do on a new build. 

I have a somewhat similar situation as Bill's and I am tying to get some ideas on my basic bare bones frame work.

figure $12K for a bare bones 20x22 garage in Chicago which will end up messing up your parking spots for the other tenants.  

But as a landlord, you may want to bone up on your liability issues around your tenants' dogs.

If it was my money i would buy a neglected house that need a lot of work but with the bones of the house been in good shape and do the BRRRR method.

This is not like riding a bike where you can jump on and perhaps, at worst, break a bone.

Buy within valuation, buy good bones and any market can be a good one.Best... 

Then if they are motivated and want to sell, negotiate a lower price that's fair to the seller but also enough meat on the bone to do your exit strategy (wholesale, flip, BRRR, etc).