What happens is that an inspector is sent, the inspector always goes out of her way to find problems ( so as to avoid potential litigation from a tenant or loss of job) and always claims them to be escrow worthy for the same reason.

Hey guys, What would your max offer be on the following property:Duplex (950 sq ft each) - 2BR / 1BA units.  30+ yrs old.MONTHLY INCOMERents: $500 x 2 = $1,000/month.MONTHLY EXPENSESVacancy loss (@ 8% or 1 month): $80Property Mgmt (@10% only when occupied): $100Property Taxes: $70 (from PVA)Property Insurance: $75 (estimated)Ongoing Repairs/Maintenance (@10%): $100Cap-Ex/Maintenance Reserves (@10%): $100TOTAL MONTHLY EXPENSES: $525 (which seems in-line with 50% rule)FINANCING20% down, 30 year fixed loan, 4.70% interest rate.Principal & Interest PaymentAt $55,000: $228/month --> Monthly Cashflow (CF): $247At $60,000: $249/month --> CF: $226At $65,000: $270/month --> CF: $205At $70,000: $290/month --> CF: $18Purchase price will likely be between $60,000 - $70,000, but want everyone's opinion.REPAIRS NEEDEDAt first glance, minimal repairs seem to be needed:1.)

Just food for thought. 

I wanted to sell it, and cover the losses myself, but he refused to sign the paperwork to sell the home or have me, as an agent, represent us as the seller.

I've since spent that time selling off (almost) everything and travelling all over the US and basically reinvented myself as a loss expert.

Purchase Price (ideally): $46,000INCOME: $1,000/mo ($500/unit)EXPENSES Vacancy Loss (@8% or 1mo/yr): $80/moCap-Ex (@10%): $100/moProp Mgmt (@10%): $100/moOngoing Repairs (@10%): $100/moProp Taxes: $60/moInsurance (guesstimate, will get quote soon): $75/moTOTAL EXPENSES: $515FINANCING: 20% down, 30 year fixed, 4.70% interest rate.  

Out of the $60k I made last year they only used $45k after deductions (showed a loss on the rental because of the initial rehab).I am now renting both the units and with my job, my gross income is $85k.But the bank is still looking at the $45k!

If this property has an ARV of $110k and you need to put $30k worth of rehabs into the property then you will probably loss money of you buy it for $59k.  

I love the Bay Area, cool people and I am fiending for some "Taste of the Himalayas" food at that little place in Sonoma. 

My wife and I want to help those that are less fortunate, and we eventually want to start a farm providing those less fortunate with the opportunity to work and have the food and stability they need.