A rough 1% rule would suggest a valuation from 300k (which is near his asking price right now) to around 1mil.It may still be a viable project, especially if there is potential for the area, but I would seriously question how you got to your renovation budget, and more importantly, if the sources that you relied upon that got you to that figure are reliable and capable of taking on this sort of project.

Would you listen to THAT suggestion?

What do you suggest on a limited budget?

@Anna GreerWelcome to BP and congratulations on jumping into the forums.The City of South Bend commissioned a study in 2013 named "An Analysis of Residential Market Potential" for  Downtown South Bend.

I would suggest that you follow your instinct and give them a option to move out with no penalty.

My classes take up the majority of my morning and early afternoon, then of course I have to spend time outside of class studying.

I would suggest you find a mentor.

@Tyler HuntingtonI will assume your pro-forma on the expenses is accurate, and there are no common areas where you might need to pay for electric to a light or two; tenants pay for water, sewer, trash, etc.My suggestion is to look hard at your acquisition costs.  

I keep suggesting what Dave Ramsey teaches...you want to get Debt Free first.

I second the HH Gregg suggestion.