Here are the key data points:Park info  Located in Alabama61 lots25 owner occupied homes18 park owned homes (14 currently rented; 4 currently being repaired and should be rented soon)18 vacant lotsAvg lot rent - $160 (unknown what the market rate is but it doesn't sound like there has been a rent increase in at least a year, maybe more)Avg POH rent - $400Expense ratio - seller claims 26% but I'm estimating 35% for the lots and 50% for the POH'sCity water - individually meteredSeptic - good condition (allegedly); a couple were pumped last year, none this year (no lagoon thank heavens)Seller claims gross income $130k, expenses $30k, and NOI $100kI calculated gross income of ~$135k, expenses of $60k (55% on POH and 35% on lot rentals), and NOI of $75kOther infoMom & pop seller, but park is listed with a brokerPark has been on the market for > 3 years (recent price reduction)Greater metro area stats look goodPopulation = 115kMedian home price = $105kUnemployment < 8%Household income > $40kHousing vacancy ~ 15%Closest Walmart is 7 miles awayFreeway is 1.5 miles awayNumbersMy valuation is coming out about $80k-$100k under the seller's asking priceWith conventional financing I'd be hoping for a purchase price of $500k, $100k down @ 6% over 20 years (not sure if this is plausible or not)Assuming that financing, I'm expecting net cash flow of $40k (after debt service)Upside potential is in raising rent and filling the 18 vacant lotsFollowing the same assumptions above, raising rent $50 (if the market supports it) would change NOI to ~$90k and net cash flow of just over $50kFilling the vacant lots could potentially increase gross rent up to somewhere between $150k-$200k, depending on what the appropriate occupancy rate is for the areaWithout verifying any of the above information (haven't offered anything yet so there's a lot of DD left to do), the deal seems to make sense. 

The ability to leverage your 100k over multiple projects makes it more attractive for additional RE income and also long-term appreciation.

The spread enables me to get low or no cost insurance.Lastly, this isn't my personal example but my partner used notes to pay for the addition on his house.

Additionally, I did not see you include any Holding or closing costs in your data.  

I am looking at two properties next door to each other which if I could get a 33% reduction I could be at 1% rent to loan. 

I feel comfortable with basic work such as paint, floors, kitchen upgrades, and maybe adding a bedroom/bathroom with the help of a contractor.Here a rough example with figures I just made up:Purchase – 120kRehab – 15kARV – 170kForced appreciation on rehab – additional 35k or 233% of rehab costDoes this sound right or way off?

If i don't pay anything for the audit defense, then I do not have a deduction.Furthermore, if the CPA made an error that resulted in additional tax and interest/penalties, then I would pay the extra tax but expect the CPA to cover the interest/penalties.

Additionally, I'm assuming "paid deposit" is earnest money, or no?

The property will be obvious more attractive without additional fee charged to tenants.

We are planning on refinancing and paying off the loan and pulling out additional equity once completed.