@Caitlin Worrell  Is it possible that the additional bedroom and square footage was never permitted, and the tax records show the lower bathroom count and square footage? 

It completely depends on the available space--we basically build to the capacity of the lot, because we make money on every little square foot we can build (although limited by the neighborhood for max square footage/unit).Lending for us is mostly identically from flipping to developing.

I estimate just your sale costs at about 50K.Given all of your assumptions that you've provided on adding square footage, and corrected fixed costs your ROI is less than 7%, and that's before you give a split to your private money partner.  

Also, the property seems recently renovated so cap-ex should be low for the first few years.Mortgage with 25% down and 5% interest: $275.Cash-flow: $275rent-to-price: 1.6%I think this meets all of my criteria.Price: $50k - $125kRent-to-Price > 1.25%Trulia crime rating; Lowest/LowRent > $1000Cash Flow > $250/moCoCR > 10% (with 25% down)Square Footage > 1100 sq ft.Recently renovated, rent readyThank you so much for any input and advice you have.  

NNN and CAM charges are based on that square footage.

They never mentioned 1 ton as an option and provided the 3.5 ton based on square footage measurements of the property. 

That is unless you can add some square footage...if you can bang this upto 1200 square...looks like $425k+ is the next stop.

Meaning adding value, adding a bedroom, reducing expenses, raising rents, square footage, etc.

Knowing RESPA or agency disclosure or the square footage of an acre does not help running rentals.Get one that came up in the trenches of their own rentals.  

I do understand that there are a lot of variables, like square footage, finishing, etc.