After doing more extensive research like you mentioned, the fees to build in the area where its at are low, including sewer, natural gas, zoning, permits, etc. 

Please note that you are obligated to pay back their 401k (regardless of the performance of your real estate investment).Per the loan offset rules that went into effect with the 2018 Tax and Job Act: if you leave your job and the loan is current at the time you leave your job but then the loan goes into default because you left your job, you will have until your tax return deadline (including any timely filed extension) to make the loan current by depositing the outstanding balance into an IRA (and thereby avoid the taxes and penalties that would otherwise apply).If you are self-employed with no full-time employees & you can rollover the funds, you could set up a Solo 401k, rollover the funds and take a 401k loan from the Solo 401k.

@Thomas DunleavyI didn't conduct an in depth analysis, I just briefly looked over the loopnet information. 

Since you're local, getting an extensive market knowledge should not be a problem. 

Should we offer 50% - 60% ARV because of the extensive rehab?

Should we offer 50% - 60% ARV because of the extensive rehab?

You see, an agent is an extension of their broker.

It can be a timely, extensive, and expensive process to get the value you want, for a flip or a rental. 

There are mixed reviews on whether this is a positive or a negative, but if the other factors have been met, this is another great sign you've found a company dedicated to providing a quality product and resident to manage.Also, even though some of the prices look like there is a premium in price point, you have to find the value in the services being provided: Extensive research in the submarkets in their city, leasing services, value add to the property, and property management.I hope this helps start the convincing process.

Even if they do, I would think that conducting inspections prior to placing an offer would be a very costly endeavor.