Dpending on the type of property, location, traffic count and other aspects may be assessed.

Chris, whether the property is listed on the MLS or not, the buyer will always be able to see sales data & history by pulling the tax assessment.

In your area judges are more liberal than in mine and it may be hard to know which way the wind blows, so I'd definetly be insured.A good insurance broker/agent can help you assess your risks.

And I am pretty certain Chicago no longer has R2 designation.If it is a non-conforming 3 flat, it can be an issue when you get a building permit or during the triennial tax assessment or any number of situations.

We can certainly point out the lack of cash flow as a buy and hold, but we really can't say it's not a profitable transaction in the big picture.Jon is correct in his assessments, his method is valid, but IMO not the only way to assess the potential of a property.

There is a procedure for assessing this civil penalty.It is possible for some that they make so little (and have no assets) that the IRS determines that the debt is uncollectible.

Weak HOAs are a pain in the rear and can be costly with random assessments.

There is absolutely no issue with the FMR assessment of the property, there is no relationship to rents as that payment is for the debt created out of taking the option.

You can then assess the deal and see how this investor made this money.

One must do a proper evaluation of the property, assess the risk and buy at a % of valuation.