Heck, some people might even pay more for the 'cool factor' of living in a 'small home'....I'd give it a go since you're a veteran of this RE stuff.

Vacancy and maintenance factors should be higher than for Class A or B.

Here's a link https://www.oregon.gov/ODA/shared/Documents/Publications/FoodSafety/ServiceAnimalsposter.pdf The BS factor is off the charts with some clients...Then it gets tricky because you are only allowed to ask certain questions as to whether the dog has been trained to perform a specific task etc.

@Stuart UdisAll great comments, seems like putting skin in the game will be a reassuring factor for any potential investors.

@Dennis Bragg, how did you factor improvements and market appreciation into the buy-back price?

@Robert Quiroz I think all of the factors you have listed might contribute.So I’m not going to comment on that but I am going to comment on an assumption you made.If 85% of rents are below market on deals you underwrite then those contract rents are probably THE market rent.You can’t just go based upon area median income to rent ratio.First off urban areas are oftentimes street by street, block by block.

This conveys confidence and ensures you don’t end up overpaying or taking on unfavorable terms.Negotiate More Than Just PricePrice isn’t the only factor in a deal—other terms can often be just as valuable.

Now if your thinking location jumps out as a big factor to all this, you hit the nail on the head, location location LOCATION. 

An audit could be triggered by a number of factors that don't line up when run through the IRS's system, and create an exception.

Budgeting for furniture and coordinating the time to execute or hire a designer is something we try and factor into our Pro Forma or analysis.