That is a good thing to remember when you are negotiating or selling.

But the cost of property management is another way to negotiate down the purchase price. 

I am a trendsetting shaker, motivator, mover and persuasive negotiator ~ Thank you.

I'd try to negotiate a bit, drop that to maybe $7,500.  

This gives you more room for negotiation.

While researching the property, sales records and owner info, I discovered the seller also owns the house next door to the one I'm interested.This is when I had a thought.How can I get in touch with the owner to negotiate a package deal for both houses at a discounted price?

In reality, most things on the MLS come in close to retail - even in a trashed state - because, well, people are buying them.Your best course of action in many areas now is private marketing where you can maybe catch someone at the front end of a distressed situation that wants to get out NOW, and you can likely negotiate closer to 56-70% of After-Repair-Value (ARV).

However that is fully negotiable.

There is not enough numbers there to give you an answer - but you will probably be paying 400 in mortgage, then taxes( looks like probably 200/m), water, sewer, maintenance, insurance, utilities. throwing a rough number out there i would say you probably would have about $900 / m in expenses, so you could make $400 / m. can always try and negotiate a little lower to make a little more.

All the terms are negotiated with your friend (and some family members are legal people to deal with).There are a number of sdira companies that have lots of info on their websites.