I began scouring foreclosures, REO’s, and craigslist.Eventually, I came across an SFH REO that had been on the market for 15-16 months.It was initially listed at $89,900, and was down to $39,900 by the time I looked at it.It clearly had plumbing and a kitchen for an un-permitted 2nd unit upstairs.The conversion from SFH to duplex would be easy.It basically needed everything.I decided to put an offer in.I felt like I could make the numbers work at $25,000For those still reading, here was the process: My initial offer was $10,000 w/ $500 EMD all cash.They countered at $35,000I went up to $15,000 and they stayed put (oops, over-played it)So, I counter at $17,500—best and final offer.They counter down to $25,000 w/ $2500 EMDI email my lender, and let him know that I am at $25,000 (he knows that was the target was), and told him that I wasn’t done and wanted to bring him down further.He says “Let me get this straight.You got them down from $40,000 to $25,000 which is 37.5% off asking price, and you want to get them down further???”

New roof, HVAC, all hard flooring surfaces (no carpet), upgraded kitchen and bathrooms, landscaping and more!

It needs little work;  just a fresh coat of paint and a new subfloor in the kitchen.  

Remodel the kitchen as well as add a laundry/utitlity room.

Possibly added value with kitchen installed downstairs...

I'm trying to figure out if it's feasible.I'd like to build a 4-6 unit building (assuming the city approves) each with 2 bed, 1 bathroom and small kitchens. 

I left out the important details about how much work the house needs: new windows, roof, no AC, not even a fume hood in the kitchen, sometimes mold issues in the basement, broken windows, landscaping. we basically self manage which is at times frustrating.

Doors, hardwood floors, titles, tools, windows, appliances, kitchen cabinets, counter tops, and much more.

Tile in bathroom, carpet in bedroom/living room, and laminate wood flooring in kitchens.

You're most likely responsible for the AC, water heater, and anything "inside the box" like plumbing, electrical, flooring, kitchens, and bathrooms.If you find a cash flowing condo, the only real concern in my opinion is shifting HOA management and fees.