One thing to do is possibly take him to your other properties and show him the condition that they are in.

Just stumbled onto the podcast and forum and thought I'd throw out my first post as I'm beginning to read How to Invest in Real Estate: The Ultimate Beginner's Guide to Getting Started, as well as working through general knowledge and terminology in the industry.I'm a 29-year old strength and conditioning coach working in China with the NBA for the past two years, focusing on youth and pro level basketball development.

Are the homes in bad condition?

I think a large factor has to do with the age and condition of homes.

Hey Ronnie,Take a look at it from this angle: one of the factors that will help push your rent in the higher range is the condition and layout of the unit.

It is stupid because you get what you get and these houses may be retail quality, but likely are foreclosure quality, needing lots of repairs.I did not have entrance to either house prior to purchase.First house I knew has condition issues inside, and major roof issues. 

That type of house, in nice condition, would cost here in Milwaukee probably 140-160k, if you go into a nicer school district in the suburbs about 200k.

If the numbers work on this place AND the unit condition reflects the $33,653/unit price then it may be a great property. 

So when I say relative, I mean the type and quality of property is a factor.The 1% or 2% rule doesn't take into account expenses or condition of the property, so it is not a complete metric.

There is always a place near the end of the realtor's contract that you can write any additional terms or conditions.