However again if your bound and determined to buy the physical assset then you need to buy quality not C class.. you will NOT get consistent cash flow like you are thinking your will. you will have tenants stop paying you will then get NO rent for 2 to 6 months as you evict and then spend thousands rehabbing the house they just trashed..

Other factors such as the quality of the tenant, and location will also determine the value you can get.

Once you get a flavor for lending options you should run a proforma and determine how much return the project will be able to generate on its's own and how much return will be left for LP investors if you go the syndication route.

An investor should actually work backwards from their Target ROI, to  determine what to offer on a rental property:Determine reasonable market rent, NOT the highest!

Performing notes the investor makes money from the monthly payments at a ROI determined by the payments and the amount paid for the note.  

I am guessing in Muncie the cap rate is probably 8-12% cap rate so take the NOI and come up with a comparable cap rate to determine the value. 

This means that buyers in our area are, on average, acquiring the house for 98.5% of the listing price.ex: Listing Price ($250,000) x 0.985 = Sales Price ($246,250)The data will provide guidance as we determine your next investment!

FULL STOP  Your ability to make such a profit will depend on your ability to manage the asset better than the prior owner.As a seller, the broker should be helping you determine the price point, at that time, that attracts enough buyers to achieve an optimal sales price.

So you have to determine it’s lease value.

The closing attorney or Title company may be the determiner for an answer and usually at this point in the process as an agent I'd defer to them.As an investor, I think I'd want all this squared away before closing so maybe check with the attorney/closing company.