I have agreed to repay the moneyThe point is that your creditor will argue that your "mutual contract to repay" is a sham because you are not under an obligation to repay your parents for something that they are required to provide for you.

We can point you in the right direction like saying check out this data or that data and get back to me, but saying "ABC location is garbage or fantastic" is not a good idea.

If you foreclose then you can still get that judgment against the personal assets.Seems like that would be a reasonable point to argue that you offered a very big benefit to the borrower for the DIL.

In fact, I argue vehemently on all of the "50% rule" threads that inflation and the erosion of purchasing power of the dollar is a primary reason strictlyy using the "rule" is hogwash in many instances.

I could fill a Raddison with investors who will argue to the ends of the earth that rentals are the safest and they would never touch anything else.

I'm NOT arguing with you, I'm just new enough not to understand how that portion would work. 

My strategy is to argue for the sales price, supply the appraiser with photos of the "negatives" with photos and be prepared to negotiate.

But my husband and I argue about this kind of stuff all the time.

You can argue that is a bad assumption, but using that assumption it is 6 of one half a dozen of the other.Mathematically finding a 2% property is the same as using the 50% rule to estimate annual NOI and dividing by a 12% Cap rate.Example (on the level of property that will often meet the 2% rule)$500 monthly rent says you buy it at $25,000 to meet the 2% rule.Take the same place and assume the 50% rule which gives you $250 a month or $3,000 a year.  

I've also had a couple of people try to tell me that my model won't work in X area and rather than argue about locations and wrestle with doubt, I now prefer to just quietly handle my business and fill my units from my waiting list of tenants ;) Generally speaking though, there are some great deals to be had in Michigan/suburban Detroit and there are a few solid $50k deals left in Atlanta too (much harder to find).