4-Insurance coverage on the property in the rolling 12 is paid monthly for 3 months, then is missed for a few, then a large payment mid year and none for the remainder .5-Recurring charges monthly for paint, HVAC, and building material and supplies6-Owner pays water, and gas.Also there appear to be a charge for meter reading monthly ( my view is that I would try and get the tenant to pay this stuff on their own or ensure i have a bill back process.)7-Owner appears to also absorbing tenants credit check fee8-Unallocated Prepay is being counted as income ( not sure what the owner is referring to)With the owner willing to sit down and talk with me, I think that I have a chance to show him why i can not buy at his asking price and maybe get him to consider an offer significantly below what his asking price currently is because I am estimating about 200K in remodel for the property in order to raise rents to comps in the vicinity.

Consider an FHA loan that requires low money down once your finances are stabilized with good credit.

Then you should consider an 80% 1st mortgage followed by up to a 90% or 100% HELOC.

If I was looking at this deal I probably would only consider an offer near land value.

Sounds like you're already doing showings but definitely consider an open house for your rental because this gives you an advantage as far as people seeing others considering the space.

Definitely consider an option that allows you to achieve all of these steps in one place (ie. keep track of things like rent payments + leases, but it also offers several other tools as well -- the ability for tenants to build a credit score up to 40+ points for on-time rent payments with our CreditBoost feature; which can be enticing for them as they are new student renters); and lastly offers maintenance ticket tracking with automated messaging).

My two cents is go beyond the home inspection and consider an HVAC inspection and/or Sewer Plumbing inspection, especially if the home is pre-1975.

@Keith Miller I'm from Wisconsin and most of the local lenders in my area consider an investment property anything you don't plan to live in.

You could transfer 5% of the title ownership to him as a Tenant in Common with you and then consider an agreement limiting his right to force the sale / waiving the right to partition / his agreement to sell it to you at a set/fixed price.Don't know how your HOA would respond to this and there may be Washington case law that does or does not support it.Good luck.

If you are interested lending out of a self-directed IRA or SoloK, then definitely talk to Brian Meidam who I consider an expert on this topic.