With my $865 PITI, I'd cash flow about $430ish before factoring in expenses.

The tenants are adamant that they are allowed to leave on Sep 30, while I believe their move-out should be on Oct 31, after factoring the 30-day notice which requires them to pay rent for the following month since we're already one week into September.Here are the salient clauses in the contract that we signed.

So when you know all that factors you will figure out your next step.

I knew that they leveraged the comparable sales; however, I had heard that some appraisers will use 1% of the rental income as a factor for their appraisal. 

But both of these factors are adjustable. 

The cost to build will also be a determining factor. 

Buyers can take forever to find a home.The other alternative is find off market deals as I’m guessing what you’re referring to as far as stuff going fast is on the mlsGood luck!

Your grandmother is independent but does not mean she will be independent forever.

Kids are noisy and smelly but not when the tenants are there :)I specifically like daycare because of a few factors. 1) It is internet resistant - you can't put your kid on the internet so you won't lose tenants to that in the same way you could lose a retail or office tenant to the internet. 2) It's always a need that will be there 3) A lot of times these days daycares are supported in some way with government funding.One thing to pay careful attention to, as mentioned above, is the lease.

ROI is not the primary motivating factor.