I can sort of see this because a score below 500 is usually indicative of some pretty serious, ongoing problems.

In that time, hopefully the HOA issue for the community can get resolved, but it is bound to bring down the property values of all the homes in the community in the near future to below market rates.

But, by specifically stating a "Cash Flow" number that doesn't include these expenses, you ARE ignoring them.To not ignore them, your cash flow statement should be, for example:Cash Flow: $309 MINUS OPERATING EXPENSESAt very least, you should include a disclaimer to the effect of, "The Cash Flow and ROI numbers do not reflect the inclusion of operating expenses; actual cash flow and ROI will be lower."

I'll show my CList ad below.

They are all but gone, but the ones I HAVE seen still, require the property to fit within VERY specific guidelines...such as a specific part of the city, blah blah blah, and if it's going to be non-owner occupied, that may filter out some of those grants even further.

Paid closer attention to hvac simple routine maintenance - changing filters, keeping overgrowth away from the A/C.

I find that is is a good marketing strategy to be able to advertise a below market rent and have tenants pay more utilities.

So at a 10 CAP this property according to YOUR NUMBERS would be worth 55,000 and the seller wants 130,000.Also you are banking on 0.00 percent interest and straight principal pay down.Many sellers won't finance below market interest rates because of the imputed tax provision ( I believe it's called that ).Remember owner finance isn't always a good thing.You still have to get a decent deal AND the owner finance.If you got owner finance with no money down and no personal guarantee and a non-recourse loan then if they took it back then no big deal.Sounds like you need to move on to another property.

I must admit that buying at or below tax value is a bit absurd.

So... you can make an offer to the owner, with the stipulation that the contractor's estimate comes in below (say) $26,000.