Provided you have a signed esstopal letter from the tenant indicating they had no deposit with the previous landlord.They may also choose to move out as opposed to signing.

If you're looking for a house hack I would wait patiently for the right 2-4 unit that works well for you and your own individual needs or I would buy an older SFH with an accessory dwelling unit (or the opportunity to add your own or convert an unused structure on the property).

Cap rate is a function of market risk and rarely will change on individual properties. 

It may just be that the seller wants too much and there is no solution but I was hoping investors with more experience than myself in this area could provide some insight into how they would value this and how much of a hit to cash flow would be acceptable in exchange for future potential.The details:4-unit purpose built building in an average residential areaCap rates for 1-4 unit properties range from 6-10% depending on quality, location, conforming vs non-conforming etc.Asking price $520k, dropped from original $550k and has been on market for a few monthsRents are ~$34,000 and should be ~$48,000Expenses (excluding maintenance) are ~$9,000 - This puts the asking price cap rate at ~4.7% (not including maintenance)- We estimate that at asking price it would be about -$260/month in cash flow and break even at a PP of ~$450k assuming our typical 10% of rent for maintenance- We estimate the building would be worth around $530k at market rentsWe were thinking the cash flow neutral price would be our best offer, but their indication was that they are looking for close to 500k. 

Regarding some markets not being good places, if it meets the 1% rule wouldn't that indicate a good market?  

What I want to know is what banks have individuals had the best experience with down in south florida.

Additionally, If your city does not have their own individual ADU compliance rules signed into law and regulations by Jan 01, 2020 they must default to the state rules with no additional requirements.John, my understanding was similar to yours regarding parking, the property I just purchased in Anaheim with detached garage is less then .5 miles from public transportation, yet my initial ADU report from Hausable states I need one covered parking spot.  

Cost segregation combined with bonus depreciation is huge.A lot easier to 1031 one 100 unit property than 100 individual houses.Apartment rehab often stays below the $2500 de minimis safe harbor per item (because apartment communities don't pay retail) - which means immediate deduction and no future depreciation recapture (i.e. an HVAC replacement may only cost $2400).Some apartment rehab above $2500 per item can be immediately deducted if it does not meet the 20% "unit of property" rules (i.e. replace one HVAC system in a ten unit building).

Also consider how you will title the LLC interest (individually, as tenants by the entireties, JTWRS, etc).

Yuck, unless he just wants to help his son and doesn't care about his real return.Your profile doesn't indicate any experience, Kevin, which makes this a relatively high-risk real estate loan.