You must choose your own path and determine your own comfort levels versus risks and rewards.

Make sure to checkout income levels, school rankings, job market, entertainment, and crime rates.

Remember to also pull comps for rentals in your area, you must set the rental price for this home at a level that is competitive, if you don't you wouldn't get it to move quickly.

.- Your desired level of rehab.

Seems you are new and the seller(s) are old, sly investors, seems the table for negotiation might not be level. :)

My analysis is fairly high level at this stage.

Consequently, it is truly an issue that is best addressed at the local level first.

Building is roughly 6000 sq ft, 3 story with a commercial unit on the main level and 4 apartments.Current rents:Commercial space - $500Apartments - $300/ea (Tenants pay all utilities)Light on top of building that banks rents $126Total: $1826 per monthPurchase price - $92k (land contract)Down Payment - $10k5.5% interest on 20 yr mortgage with 3 year ballonMortgage payment: $564Taxes - 3300 annuallyInsurance - 300/monthA few things to note:- Rents need to be raised.

What causes people to sell and be motivated is what you look for, or what makes them buy.Foreclosures, loss of job or a promotion, bankruptcies, death, people move into nursing homes, have medical issues, get married, have more kids, kids take off to college, retirement, etc.

Best case may be, structure on land that can be leveled at the right time-Helps with city services, could be rented during delays, permit expedition due to existing structure, cookie cutter house plans that the city has seen many times can cut the permit process to a few weeks is what I have learned.I may have to find a new strategy - numbers in this market are just not fitting all the REI goto rules for cash flow, hence my interest in development to scrape the numbers together.Thank you for your time.