As a home, this will have external obsolescence issues being in a commercial area, financing will be difficult and demand will be lower for residential use, thus the lower price.Might look at it as a demo, remove the house and build an appropriate structure or sell the lot, commercial lots can be much more valuable than lower priced homes.

Something that would protect users a bit more than they currently are protected.BTW while looking for a new external drive I noticed an interesting external drive that I want to investigate.

In one of our buildings we had a space like this (use to be the laundry room before we move to en-suite laundry) which had its own external entrance so we rented it out as storage for a year and then turned it into bicycle parking for our tenants (as this fit the needs of our tenants).

Doesn't sound like any external pressure (code enforcement, potential foreclosure, bad tenant, needs extensive rehab, etc.) so there isn't any real reason for him to sell. 

That is very low in my opinion and not realistic unless the units just need new carpet and paint and some mechanicals.If these units have been tore up as is customary for that level of vacancy you can almost double the expected capex to 3 million dollars for full rehabs once you factor the parking lot, windows, roof and other external costs not inside of the actual units.First you need to know the exit expected cap rate once stabilized and expected rents being conservative.

Ever hear of property degradation, intentionally employing external obsolescence factors that reduce a property value?

Similarly each unit key can open the common external door when present.Lay out what you want to achieve - now and as you grow - in a spreadsheet or document and pay a visit to a locksmith to help you fill in the details and to rekey your buildings.  

Prices are higher, the homes have been significantly improved, functional obsolesence usually removed.I doubt that anyone can pinpoint an area as having a greater weather incident will cause any external obsolesence in the market, look at tornado alley, if the weather wasn't acceptable people wouldn't be there.

Like: knob and tube wiring, foundation issues, pests.Also look at external factors.

So there's another way you can unexpectedly lose money on a flip - an external force that causes enormous deflation of the currency you used to buy the asset (Dollars), assuming that you can't get someone to buy that asset with a stronger currency (Say, Yen, 'cuz we all know the Chinese are gonna buy America. )