The asking price for the home is 132k.OPTION 1 – Cash After Repair Value = $132,000 (estimate)Discount 80% of ARV = $ -26,400Repairs (Price per square foot) 1,190 x $5 = $ - 5,950Cash Price (seller pays closing cost) = $99,650OPTION 2 – Sandwich Lease Option – “Perfect Tenant Program” Term: Minimum 5 yearsOption Price (buyer pays closing cost): 125,500Option Consideration (non-refundable fee we pay you): + $500Monthly Rent: $950 (profit + $100 cash flow per month)Total profit (If completed full term): $132,000Note: We are the tenant-buyer, but we will sub-lease the house to another tenant-buyer.

We had a buyer sign a contract with a non refundable EMD.

Typically, non homestead properties are taxed around 2% of property appraiser office values.

So this is unusual indeed, particularly in this market.Out of curiosity, is this deal structured in a way that favors the seller getting the property back? 

I agree with you in certain markets that don't appreciate the returns are only what you can make on cash flow over a long period of time and you never have to sell or recapture deprecation or have major cap ex either of those will kill your returns back to next to zero.but you take high appreciating markets and these charts are not accurate at all. its the dead an dying or non appreciating markets that weigh down the US averages.. any property bought in say SF or SF peninsulas back in 08 have basically gone up 4X  and or more.. other areas say Detroit or other cities that saw mass movement out of area .. properties peaked in mid 90s and have been going down ever since .. with the exception of the craze to buy SFRs as rentals by out of country or state investors this has propped up values in these areas.. 

So, if the were to get fined and refused to pay, this would be the start of an eviction for non-payment of rent.

Unless you go over 1M loan size and over 90% occupied stabilized building you cannot get a Fannie or Freddie non recourse loan.

I'll be calling around, but just curious if anyone has had particular successful with loans for 2-4 unit properties around Buffalo. 

Lending is almost non-existent in the sub-40k market.

I am pretty confident that the seller will not be able to obtain the CofO for a 2 family In this particular town.