I really would want to stay away from any office properties in depressed or even semi-depressed neighborhoods, especially large ones (like a 13 unit complex).

Last August a decent pre-foreclosure opportunity came available on the MLS and my agent took us to see the home and submitted two offers below asking that were too low for the seller at the time.Apparently the seller was able to avoid foreclosure and the home delisted after it didn’t sale.

Can try to reposition to Class B, but neighborhood may impede these efforts.Vacancy Est: Historically 10%, but 15-20% should be used to also cover tenant nonpayment, eviction costs & damages.Tenant Pool: majority will have FICO scores of 560-620 (approaching 22% probability of default), many blemishes, but should have no evictions in last 2 years.

Coffered ceilings, low corner additions etc.Anyone can slap lipstick on a pig, looking for high value add in high demand markets is where the $ is.

Timing, interesting neighborhood How did you find this deal and how did you negotiate it?

Please do check with HOA on having an STR in that specific neighborhood.

I've never had something that low, but I'm also looking at roughly $30k in equity on this property. 

@Tanya Maslach "I came away with several neighborhoods in Ohio"Ohio is on my radar for MTR, specifically rural areas in Columbus/Akron/Cleveland. 

I would say you're rolling the dice with that neighborhood and the street trying to push LUX.  

Low barrier to entry, low taxes, landlord friendly, some amazing class A and B suburbs and a strong urban core.