I used to live there so I didn't just pick a random market.

We happened to have just added some inventory in the Birmingham market. 

Will rent for 1750/month.Capex items needed soon: roof, water heater, furnaceArea: A area, appreciation is at about 5% a year but average home price is ~$500K so this home will appreciate faster, this will have multiple offers on itDeal #2 - mixed use, small office with a 3 bedroom and a 1 bedroom over it.Ask: 325KCurrently fully rented on one year leases, bringing in 4775/month but only one tenant pays their own utilities plus owner is responsible for snow removal and landscaping. 

My units cost $35k to fully furnish, and my ROI was astronomical because although the market was limited, I OWNED the market.   

Any of these incorrect assumptions will lead to over paying for the real estate.

Why were the investors in a real estate investment paying for the sponsors business?  

With rates where they are, I'd expect you don't plan to be in the mortgage for more than 3–5 years (maybe less) depending on where the bond market goes. 

If they tenant is $300 below market, that's costing you $3,600 a year.

It was on the market for a long time because it didn't qualify for conventional financing will it being unlivable. 

Hey Stepan, Some changes I'm advising and seeing my clients implement are expecting an extra 3 months of holding time and undervaluing the ARV just a bit due to high inventory on the market.