If you think it's worth 260k, then it's probably worth less.I would always look at it from the seller's perspective.

Thanks Brian and greatly appreciate your perspective. 

I agree with everyone above,I think from a management perspective, rent by room will have you involved quite often and unfortunately probably diffusing problems with shared common spaces.

@Robert Ellis Thanks for offering your perspective. 

I understand this is all based solely on a cash flow perspective.

On paper what you're describing might sound doable - but it sounds like your perspective on REI is based off of knowledge of only the "good parts" Managing and owning rentals (yes, even with a PM & price point of sub $50k) comes with its own challenges and headaches. 

Will you have more or less cashflow per month (including your income from a job) before or after this perspective deal.

I appreciate your question and perspective on passive income.

Update your ads often to keep them fresh and true.Good luck!

However, this perspective overlooks the strategic advantages that a detailed cost segregation report provides.