One downside of condos is that you have less control, so you don't want to deal with bad associations for years to come.Also, if you end up making an offer, it's your right to review the full association bylaws, rules and regs, budget, etc.

That is kinda crazy that is the biggest they will let you go.

As others have said, it will probably mean you end up paying the 40K, but if you are comfortable at the price and are considering 40K as your "Best and final" anyway, then I don't see a big downside to try the escalator bid.

@Nick Walters the biggest challenge you'll have in acquiring 10-12 properties is the Fannie Mae 10 mortgage limit.

The downside is that I forecast the ROI to be about 7.25%; ~3615 / 50000. 45k(price)+4k(closing)+1k(repairs)

The downside is that they often have an up front fee.

But the biggest thing is the risk.

Well, on the bright side - that's not a bad deal for Portland.On the down side, once you include all expenses (vacancy, maintenance, taxes, etc.) - it is unlikely to generate any positive cash flow.Your call, but I'd pass.

Its a great self motivation book directly related to making yourself a success.Now... by far... the biggest most important thing...KEEP TAKING THE NEXT ACTIONABLE STEP!

More and more investors are choosing this delivery method in our markets as they typically get the biggest bang for their buck this way and virtually eliminate they need for any change orders which can get out of hand without and good well defined scope of work and complete set of construction documents.One recommendation that I can make without hesitation is to be certain that you use only DC experienced and licensed general contractors when you bid it out, as I have seen lots of developers/investors get delayed due to regulatory issues associated with stop work orders and the like because a lot of contractors don't know the process and the system in DC.