This may seem harsh but you need to hear it.It sounds like your seller is on to what you are doing.

That seems rather harsh.

As for the septic that could cause unique proportys in a rental, if your tennent doesnt know better they could really mess it up flushing things that dont degrade or kill the bacteria in the system by dumping household chemicals down the drain. 

Sorry to sound harsh, but a lot of people put in work this to get approved.

I know this may sound harsh, but I'd hate to see you lose your family because of a bad financial mistake.

There is chemical use that you need to be aware of and maintain compliance.

I may come across as a bit harsh here, but if you just bought the business didn't you analyze the rent and tax situation and incorporate it into your pro forma?

Think it won't effect A and B areas--look at the BMW 7's and Escalades tooling around in the tough neighborhoods (they have more than enough money to spend).Forcing people to unknowingly house dangerous hard to deal with individuals (between prison sentences) is harsh. 

I ended up having to hire my own exterminator who would come and do a chemical spray every two weeks. 

The only thing that matters is the asking price and your offer price, the ARV is something you use to calculate to see how much money you can make and you can work backwards to get to an offer price, but again, how are you computing these ARVs and how much experience do you have in assessing repair budgets.I don't mean to be harsh, but holding a firm line on a percentage like that will not get you far in a time where everyone and their cousin wants to invest in real estate and is willing to overpay for it.