@Tom V.Thanks I will factor that in future investments. 

This can begin with an informal process where they will actually visit the property so they can complete a more accurate appraisal and often results in a reduction if there were issues with condition, functionality, or external factors they had not considered originally.

It could be the car loan (which I agree you should list) or other factors.  

And since your strategy is buy & hold, which is my strategy as well, I recommend Brandon Turner's book "Rental Property Investing: How to create wealth and passive income through smart buy & hold real estate investing" and David Schumacher's "Buy and Hold forever".Feel free to reach out anytime and maybe we can grab a cup of coffee and talk more.Happy investing!

I am interested in knowing how to factor in possible plumbing related issues.

I'm not sure if it will be a good deal or if the numbers would work but we are familiar with the house, the owner and feel like one of the units in this house could be our "forever" home that we could grow into for years to come.

In most C areas that rent for $600 a month in the mid west my experience is that will have higher vacancy rates and higher costs to make the u its rent ready when tenants move out.I would factor in 15% vacancy and 4k to make rent ready again when a tenant moves out. 

For rentals lack of basement is usually not a major factor, especially in West Allis. 

We also adjust the amount we'll lend based on those factors.

One of the best courses I EVER took was a course called "Tax Factors in Business Decisions" during my MBA.