If I did set out to invest in the local area, I would scrutinize the numbers like crazy and be extremely conservative with my estimates.

Maybe look for a different type of tenant that doesn't leave every year or sell the place if it isn't meeting your other investment objectives.2) As PM's we always seek prior authorization for expensive turns or capital projects, even though the estimates given to our owner-clients are often ball-park numbers.

To answer this question you'll want to get estimated accelerated depreciation for each of the properties and do a proforma on tax savings it would generate.

A straightforward way to estimate value is by looking at the price per square foot and using that to calculate your property's worth.In situations like this, it's worth spending a couple of hours yourself to get a solid understanding of the market.

Your estimate seems low, but even at that cost, it will not add that value.  

Sub2 is a risky strategy for a long term buy and hold as the longer the deal structure stays in place, the higher the chance that issues will arise (like issues with the loan servicer, insurance, seller filing for bankruptcy, seller dying, seller realizing their DTI ratio and ability to buy their next property is negatively effected and becoming upset about it like in your case, due on sale clause being called, etc.).

With this, along with shifting the utilities to the tenants and reducing the management fee to generate an NOI of around $103k, I'd estimate the value around $1.8M to $2.0M

I also am happy to give them a chance to explain so we can build trust. 

This might be my chance to actually do it since I’ll have the funds.

Through this journey, I’ve built strong relationships and developed valuable expertise in:Researching micromarkets and identifying comparables, potencial Accurately estimating construction or remodeling costs.Securing fast and reliable financing through partnerships with two top hard money lenders in Texas, offering competitive rates.I’m on this platform to connect with capital partners who are seeking an annual ROI of 12%-15%.