I am estimating about $50k per 1 bed micro-unit w/bathroom).

I have a friend who has been doing it 40 years and has about 10 million sq ft of retail centers.

-Specs: 3 bed, 1bath in Bristol CT1,095 sq ftIt has another lot attached to it, I believe behind the property, I'm going to see it this Saturday-Taxes: ~2500/yr (this doesn't include the other lot, I need to ask what he pays for them both)-Initial home offer: 150,000 (defenitely could talk him down)Needs a 15k down payment (nothing lower)-Estimated rent:1200 if rented as one unit I'm considering piecing out the rooms, might be able to get 14-1500 that wayAs it stands at that price and a normal 30 yr fixed rate at 4% and money set aside for capex, maintenance etc, the deal is losing about 50 bucks a month, however this is a seller finance and a lot of numbers can be worked on.I'm thinking of offering 125,000 (before 15k down) with a a 40 yr fixed rate at, maybe at a little under 4%, these numbers look better, leaves a little over 150 dollars in my pocket and a little over 10% Cash on cash return.Do you think this is a reasonable offer to make in such a situation?

Based on the way the property manager described the way they bill, it is a blanket and arbitrary system. 1 bed - $60/2 bed - $80/3 bed - $100.

We have a 60k sqft retail space in a desirable retail center location.

@Drew Leo purchase price is 74k, rehab 55k, expected retail price is 180k to 185k.

What I see in a lot of reserve prices is essentially comparable retail value... and what's the point of the trouble of an auction when you can buy off MLS at the same price with much more assurance. 

I saw a 4 beds 3 baths 2121 sqft property in good neighborhood with the following numbers: Asking price $385,000 Average Sold Price: $385,250.00 Average Cost/SQFT: $207.56 After Repair Value: $436,143.71 Repairs: 10,000.00  Seller Finance Offer: Sales Price: $385,000.00 Down Payment: $1,000.00 Interest Rate: 2.00% Monthly Payment: $1,677.67 Term: 5 Years Buyer will pay for all maintenance costs and repairs. 

I did a quick look at some of the recently sold condos in her building (Same sq foot and # of bed/baths) and they've sold for about 15-20k more than what she paid for hers back in 2015 so it might make sense to sell now and use that extra cash for a place in a better cash flowing area like you suggested.

@Scott Kelly Here is one on markets and mitigating risk - https://www.biggerpockets.com/blog/property-investment-risk-retail-pricesOne on asset class - https://www.biggerpockets.com/blog/defining-asset-classholistic-approachOne on how strategies for RE growth - https://www.biggerpockets.com/blog/8-ways-supercharge-retirement-real-estate-investing