NOW, if we are to have the HOA responsible for the interior of each of the units as well, here are the eminent problems I foresee:    - owners will be even more careless and act irresponsibly for their units since they don't pay for the repairs of the interior of their units    - because many of the owners rent their units (technically they sublease), they will be even less incentivized to maintain their units    - the HOA pays for all maintenance and repairs of units and owners get the benefit of rent    - repairs/maintenance of units is not properly proportioned to their respective owners, meaning that there is no incentive to keep my property up because any repairs will come out of the pocket of all other owners    - this penalizes good owners and rewards slummy owners    - this will put the owner residents at a big disadvantage because the owners who rent their units will cause maintenance fees to increase for all owners, especially due to high turnover    --> in Summary, this is a straight example of socialist-style system (I know, my family immigrated to the US from the USSR) and it will just sink our whole Co-op.  

First it is  not MY formula.Second, it is not useful for your $50,000 house because there are no cap rate comps.Third, few properties sell for almost 38% discount if they are in marketable condition. 

Not too many valley's (increases costs) and removing the chimney also.

What did the inspector say about the condition/age of the HVAC and water heater/ roof?

Hi @Ricky Hopp I am also an Investor, and do a lot of work for/with other investors, I focus on distressed properties where a deal can be found and value can be added to the property to increase rents or get a better quality tenant in the property.  

I hadn't really considered when and under what conditions the title actually transfers.

The building is in good condition, about 10 years old, tilt wall construction in Texas.

You would get firsthand experience in working on a property and hopefully increasing the properties value.  

I will know more on the condition of the units and the building next week, but on the surface this seems like a logical deal.

You want to check out this podcast: Bill Powers uses the lease option strategy for his investing.https://www.biggerpockets.com/renewsblog/2016/07/28/bp-podcast-185-rent-to-own-increase-cash-flow-maximize-equity-bill-powers/