Any area that commands 1400 in rent even in rough shape are selling for 100k right now2) The taxes.

From there, understand what different types of leases/tenants will command what cap rates on a sale for this asset type. 

In that case the DIP would have to establish that the property can't command a higher amount in a reasonable time period.

Both John Schaub and Peter Fortunato that I mentioned above talk about having 10-15 nice houses that command larger rents and better tenants as a goal.

Those properties tend to have more transient renters, lower rent price demand, and command a lot of time/attention with tenant drama.  

First determine what sort of rent that house can command. 

(heavy rehab deals, personal lending, startup investments, etc)600,000 - Multifamily Syndications - With lower risk, greater diversification, if you partner with the right operator, MF Syndications can be the BEST risk-adjusted returns out there.I wouldn't spend a dime of the principal on houses, cars, fun, or even charity because I can do that with the cash flow and end up giving more in the long run :)This strategy follows the commandments of investing:1.

How astute of you...properties that have a garage or carport not only are in greater demand but they command higher rent - and that even include Section 8 properties. 

You can still be a primary and run the deal, but they are bringing the majority of the equity and could command greater input.

You will learn where the rents are actually below market, and what the condition of the property will command in rent.