If it's a junior lien holder, still, they aren't going to bid anything after their total debt but other bidders might get into a frenzy thinking they are getting a screaming deal (If they didn't do their homework about other liens).Even where its a run of the mill senior lien holder foreclosure, they still won't bid over total debt but, they might set the opening bid lower than total debt if their analysis shows the property to be worth less than total debt.

Just in case the new appraisal comes in lower than expected. 

The smaller/lower asking price the property, the less leeway I have been seeing sellers give on purchase price.

You rent out the upper and lower units and the total creates positive cashflow that may not be available in a regular single family unit.

No sense (in my opinion) arguing over $250 on a six-figure purchase price only to end up with the guy who cuts corners to make up for the lower price.

The rates went up big time yesterday btw Once you figure out monthly mortgage payment, property tax and insurance and the total is substantial lower than the market rent then it’s worth looking into.

And, as you have discovered, property prices are much lower in Richmond than in MA.On a personal note, I'm headed to Beverly later this month.

The listing agent did not even respond to my offer and presumably "lost" it among the pile of dozens of offers she received.There are lots of unscrupulous agents out there who will pressure the buyer to accept a lower offer if it means more commission for them. 

They said they could lend the lower of 90% by the purchase price or 85% of appraisal value. 85% of appraisal value is approx 4K less than 90% of purchase price, so now I have to make up the difference. 

Instead of the seller paying her commission, it could be used to lower the price or used as part of the down payment.