I was recently turned onto BP and I am loving the wealth of knowledge which exists on this website.  

However, I feet It has a lot to do with existing relationship..in this case..

That's 75k below asking price.If he has a renter in there already covering the mortage he has no incentive to sell.However it's possible you could maybe see if you can do owner financing or take over his existing mortgage.

Think of what you want to do and what you will have to do legally, your overall costs and the over all time and effort involved and again compare that to simply buying and managing an existing rental unit comparable to what you propose. 

I did look into this.My understanding which may not be correct is that you have to occupy at least 50% percent of the space as your business.As for selling off the business after you have bough the property but keep the building that is interesting.I guess it would all depend on what loan covenants exist in the SBA loan documents you sign at closing. 

The existing home inventory is so low that new construction is the logical way to go.  

I like out-of-state because the prices are way better, the cash flow is much higher (it doesn't even exist in SoCal), and I actually like not being able to see my properties or be tempted to drive by them all the time.

I don't know of an outline that exists like you're describing.

I would attempt to save the existing drain field, perhaps it may only need to be flushed; have your septic guy give you some alternative suggestions and make the replacement the last choice as it is the most expensive.  

In my case, I opted to pursue markets where I had some knowledge and some existing connections vs. trying to find the best market and build a network from scratch.