For many tenants in Memphis and the Mid-South, the days of rent discounts and pandemic pricing are a thing of the past.

The conservative way to budget Capex reserves is to look at estimated remaining useful life of each item: roof, siding, windows, kitchen, HVAC, water heater, bathroom, fences, gutters, chimney linings/tuckpointing, foundation items, etc, and assigning a replacement cost divided by remaining useful life.  

That unit has 6 bedrooms, 2 bathrooms.  

I have had a local appraiser tell me he runs into this occasionally - when he does, he says he 'has to' appraise the home as a conventional home (probably discounted some for condition unless extensively remodeled).  

There may be some local factors (nearby construction development or major change) influencing the owner to sell at a discount OR perhaps the owner has not been keeping up with capital improvements and the tenant base as suffered and therefore actual collections of rent have been impacted.

Remodeled one unit in it's entirety including kitchen and two bathrooms and landscaping in the back yard.

That said, in the back of the property, we have some space to add sq footage and think we can squeeze in a bedroom and bathroom, turning one of the units into a 2BR/2BA!

Ceiling fan in bathroom looks like it needs to be changed looks like moisture from when he showers builds up and causes ceiling to peel the paint off and third he said his electric stove doesn’t work he said he has told the previous landlord multiple times about these problems and he never fixed them.

After having two mortgages, I asked if I could take their problem on for a discounted price and the deal worked for both people.

If you can make the numbers work when you account for negative outcomes, you'll feel great when it's a positive outcome.Finally, when you're referring to an owner-occupied property having a negative cash flow, are you discounting that cash flow based on the income that is not coming in from your unit?