@Alonzo RamirezWelcome.Upon resale, a buyer will (presumably) have an appraisal done, which will be a much better assessment of the property's value.

In 2007 things were different, and people wold in fact give themselves a crazy W-2 for a million dollars to qualify for a mortgage (presumably with several years of net loss carryover in the future?).

In terms of a duplex, the total rent presumes rent on both sides.  

The replacement would be done in the summer (presumably when property is my possession) and seller argues he should not be on the hook for the full amount of the repair since I will benefit with a 15% increase in NOI.  

Agree with Jon - shouldn't be an issue, presuming SFR, 20% down, and good credit score. 

Those are exterior risks that impact all markets but you are a fool to not have some margin built in for those potential situations.Just re-evaluate on an quarterly basis to verify the direction of the wind and adjust accordingly and you should be in a good place.All of this presumes you can properly manage real estate once you own it.

I presume when IRS says traditional IRA, rollover IRA should be treated as such?

Presumably the buyer is less sophisticated than an investor that goes through the entire process on their own, but nonetheless, the old adage "caveat emptor" applies.

But it seems like if the bank requires that as part of the process, it must be for a reason (presumably to get FMV) and not accepting offers or doing 'highest and best' is circumventing the intent.

After the renovation of the clubhouse i presume they went bankrupt because this was 2 years ago and the club house is completely empty.