Do our prices reflect what other retail homes are selling for on the MLS? 

In my previous rental purchases the tax appraisal value always ended up reflecting at or near what I paid for the property when records were updated.

I replied that if they refused to clean, that is a reflection on them.

Yes that is a great deal for an investor, but for other people living in the area who want to sell their home that is also valued at $400K, that $50K price is not a true reflection of the value of the homes in the neighborhood. 

If you want to pool other people's money for this investment you need to let your offer and documentation reflect that. 

The city knows about the 2nd house as it's reflected in the tax record.

Just make sure the monthly rent amounts you are inheriting are reflective of what the market is saying they should be.

Before clients agree to a purchase price they think reflects a property’s distressed condition, offer them this checklist of items to consider along with an appreciation of what can happen once the acquisition has closed.

If a down payment was made, it would be reflected on the HUD-1 Settlement statement.  

As I mentioned, the market value may be adjusted to reflect a distressed value.At the moment, I can only think of one situation, I'm sure there are more that would be similar, as to a higher price being obtained than it's perceived or proven market value that wouldn't be predatory;If both parties know something that is not public knowledge, say we know that Kroger is going to build a shopping center where this house is and they will be announcing it soon, we may agree on a much higher price than what would be shown as the market value for that property.