Granted this isn't an annual occurrence, but depending on the condition of the property, I would say you are light on Capex.  

Therefore water/energy efficiency is of the tenant's concern and not mine, in addition to the condition of fixtures within the suite. 

Aug 17 posted 30 day notice to quit, squatter says he's actively looking for new placeAug 23, 2021 local power company posted 3 day notice to pull meter (or bring in contract, which squatter does not have)Aug 23 was last day we saw squatter living at cabin (we can see from our living room windows)Aug 26 power company pulled meterAug 27 CPS agent comes and documents living conditions Aug 27 posted a 7 day notice to evict due to hazard/danger/health conditionsAug 30 squatter and former tenant (she was in jail since Nov 2020 and this was her first time back on the property) stop by for 10 min, leave with an armful of paperwork, leave behind 4 flea bombs (the house is FULL of food waste and dirty clothes).

I knew his number was off since sub 1k for a 2bed is really low for Minneapolis but still seeing that and the condition it was on final walkthrough started to plant some doubts.

A reputable contractor who can help verify property condition and provide rehab estimates.

It seems in good condition but all the flooring has been torn out and it doesn’t have a furnace currently in it.

it all depends on the condition of the property.  

Don't be this person:"selling" for over market price.Selling a $100K for $10K down and note for $100K (market), then expecting buyer to refi in 2 years.Selling/renting a $100K house (in good condition) for $10K down and $90K note, but needs $20K in repairs.This list of ways to sabotage goes on and on.Courts see through this bull. 

-Interest Rate Adjustment: The interest rate payable on this Note will be subject to adjustment from time to time in the event "lender" deems it necessary or prudent.The above terms are not all inclusive and any final commitment and documentation would include other such conditions that are customary for similar transactions.

@Phil Acnodnem1) that’s up to you, assuming the house condition is good enough to finance2)not sure how your assessment valuations work there...here it’s based on market comps, not what you actually paid for it3) makes no difference4) you need a title company or attorney to give you a standard purchase agreement, for the two of you to sign.