After acquiring my first three properties in boynton the past for year, I purchased my first rental outside of boynton earlier this year because finding anything with acceptable cash on cash return was difficult at best (excluding the D neighborhoods)  

Have a duplex in midtown I just renovated and have a verbal acceptance on a property I hope to close on soon and get started up the rehab!  

If you are really going to settle on this property - you could ask the owner to give them a 60 day notice of rent increase - send this notice effect September 1st, (don't miss this mailing) raise the rent to the number you want - if the tenant agrees to accept the rent increase - great - if not - you would be in a position to eviction them based on the non-payment of the increase or they will just move - you may want to say in that increase rent notice that there are plans to improve their living conditions, supply new appliances and whatever you plan to do.Do this will help get what you want without vacancies and still have a tenant who will be happy to comply to the increase.Cash flow is King - don't kill the King.Charles

@Ashley Benning, many sellers (at least the more sophisticated ones) won't accept proof of funds letters from hard money lenders.  

The seller is motivated enough to carry the $20K, but can the owner/seller accept this offer? 

What I like about HUD is that you can make an offer that is really low and the next day they will respond with what their lowest acceptable sales price will be. 

So, in multiple offer situations, you need to be willing to offer something that will entice the seller to take the extra risk (though usually very small) to accept your VA loan over one of the conventional loan offers on the table.

The way I approached it was to figure out what kind of returns would be acceptable to me, and then looking for a deal that would give me that.

Down in South Florida - general accepted rule of thumb is around $100/sq (and I've asked a ton of people this same question).

It's reassuring to hear that same message from different sources because I can accept this reality and then do something about it (i.e. push through those tough months with my eye on my long term goals).