hello-q: i hope that you have quite the plethora in information about the decide to..build a square space (office like in function) right next to house-to have "reason space" to work from home ('i am forced to work from home bcs of having parent who survives a stroke-cared for on/in house property, bcs putting her instead in assisted living-wouldn't be more affordable/feasable, and many states (california being one) are willing to help loved one(s) to age/stay in place as reason to build these extra spaces in/on property..putting her in the situation as more benefitting i am researching the state orgs to find out what to do=being as stellar the careful/accurate as i can with gathering as to what to do..including the obtain of funding per any grants.and trusting that having your consultation has us getting away from issue/noise over just purchasing/happenstance model in default assisted: residential (multi bed home stead-with all the red tape & fees/tax justify better?

Some argue that if interest rates drop, buyers will return aggressively.

. :)Yea it can be difficult right now with the rate environment.   

Giving some rough numbers, let's say the interest rate when they purchased was around 3% and they offer to sell to us for $100,000 cash. 

The policies that are so obviously destructive in many blue states (rent control, NIMBYsm for zoning, high taxes, regulations, fees) are huge obstacles that present real risks in the short-term and with very newsworthy headline outliers.But, these same policies are also a landlord's best friend in the long-term. 

Still worth exploring if you have the time and want to save the 1% fee paid to a broker. 

I continue to get emails from Steve Mayer of Finance holding Company, but he keeps wanting me to pay a deposit + his 2% origination fee upfront...seems like a scam and wanted to see if anyone has done business with them in the past

(Remember, a loan is not a taxable event.)Given that mortgage rates are also close to 7% this won't boost your cash on cash returns much, but a higher percentage of your free cashflow will be tax sheltered, potentially all of it. 

Forcing appreciation on this one. 15/30 balloon to capture better interest rate at 30 amortization.

Based on national averages, the home should rent for $1,500 or more.If you don't keep up with market rates you will attract lower-quality renters, you won't have money to make major repairs, and you'll eventually get behind on maintaining the property, which means it will appreciate slower, attract worse renters, rent for lower rates, etc.