You are just buying the assets of the business and not the liabilities.Having said that Cold Stone is  a seasonal product of ice cream.

Likely from damp moist air and poor circulation.But I digress, the max I would pay and think it's worth is 70k.

And you'll be in the holiday season when trying to re-rent.

Built in 2002, it is a fully rented four plex (one unit is month-to-month so we would move in there).Current asking price: $495,000 (though originally listed at 474k, he upped the price after 16 days)Days on Zillow Market: Over 100Reason for Selling: To either purchase a SFH for himself and his GF or buy a commercial property, possibly storage unitsRents: 4,400 monthly (Owner said 2 units could be easily increased by $50 to $75 each)Expenses (annual)Property Taxes (assessed 2014): 7,754Insurance: 3,000 (guess)Maintenance & Repairs: 4,200 (guess)Utilities: 4,500 (average for last 18 months from water company, owner currently pays water/sewer/trash but there are separate water meters so we would look into passing this to the tenants as the leases expire)Advertising: $150 (only advertising is for new tenants when leases expire)Administrative/Misc Costs: $150Mortgage Insurance: $6,501 (from mortgage broker at 490k loan level)Snow Removal: $1,500 (as acountants, our busy season is during the winter and we don't have the time or patience to deal with this, there is a sidewalk + steps + driveway and back parking area to be plowed)Lawn Care: $150 (supplies fund, we will mow it ourself, first year expense of a lawnmower not included)Mortgage: 26,579 (FHA, 3.5% down, 3.75%)At 495kAnnual cash flow: $-1,684CoC: -9.72%NOI: 24,895Total ROI: 40.89%At 450k (keeping mortgage insurance at 490k loan level b/c I don't have other numbers)Annual cash flow: 762CoC: 4.84%NOI: 24,895Total ROI: 55.54%As it stands, my numbers are telling me this deal will not work, given the $100/mo/unit minimum standard most people are looking for here.This is the first deal that I have really looked at though as seriously buying, so I would love other people's opinions on my analysis.

We bring more $ and expertise in the seasonal rental market.

And seasonal markets like Michigan can easily lose 5%+ in resale value during the cold months.  

People are less likely to move before the holiday season and most real estate coaches that train agents tell them to set their goals for the year and divide that by 9 months because few deals are done November through January.  

You would not buy the same property and fix it up in the same way to rent to young professionals as you would to a seasoned Sect 8 tenant.

It's encouraging to get positive feedback from an seasoned real estate investor. 

I have an accepted offer on my very first property and I am looking for some feedback from more seasoned investors.