Does the seller really mean no business <full stop> or did he envision someone running a moderate traffic business (i.e. hair salon, tailor) or home-based auto-body shop in his front yard?   

Or become aggressive, build a Real Estate Business that produces massive income and runs on it's own.  

You don't don't want to get a $1,000 credit at closing and then 6 months later when a tenant moves out, they produce a $2,000 deposit receipt!

I will point out that on a small build it may not be worth that money because the "test" they do is not a soil sample or boring of the land, it is a research into the property to determine if a laundry facility or auto body shop or some contaminate / polluting type of business or entity was once on that lot a long time ago.

Also be sure to check out with your friend what kind of financial standing the building is in (when was their last increase on the coop fees etc and is there any capital expenditure planned in the near future) as these monthly fees don't go away and can definitely inhibit your ability to produce cash flow from Coops..Hope this helps somewhat!

One SFR that produces $1300/month.

Most people in life are simply not producers and are not capable of delivering value on a consistent basis.  

In the past, if a LL declined a perspective tenant based on a credit report, they had to produce the report. 

I paid 10k for one of the duplexes that produces 10k a year.

The units have the potential to produce roughly $10,000 per month in total income (for 4 units with large yard and attached garage...plus income from the extra 5th garage).Keith JohnsonREO/Bank Owned Buyer's Agenthttp://[email protected](408) 483-9261CSR Real Estate Services5330 Camden Ave.San Jose, CA 95124DRE# 01741178P.S.