If you wanted to get really freaky, you could try to come up with an equation dictating the outdoor temperature at which the furnace kicks in based on the ratio of natural gas prices to electricity prices, taking into consideration the variation in efficiency of the heat pump relative to temperatures(but that would be pretty challenging!

But me thinks the renter mentality would find this challenging to even comprehend in many rental dominated markets.. but in high end markets Like NYC or SF or LA or WA DC  were rents are say 3k and above maybe this works..  

I simply do not know this market or how to approach it, and I would love for anyone to sort of lead me in the right direction. 

I was approached by a previous tenant who offered to buy the property  from me and we had some discussion on the  850k range.

So some of the challenges I faced on this property1.

It's possible with a longer time on market, they may be open to a lower price.2) being sold by owner - may be more opportunity here. price may be over/under market value.3) foreclosure - bank is motivated to sell. may be willing to sell under value especially in a slow area.based on this, it seems like best bet would be to pursue houses sold by owner, foreclosures, and listings that have been on market for a while. there also is a whole other approach of finding motivated sellers - drive bys, bandit signs, etc. 

@Matt Said, There may be a combo approach here that is to your best benefit. 

Current Situation: I have identified a 3 family in New Jersey where I have planned to use an FHA loan I am pre-approved for. After speaking with my lender, I learned it likely won't pass underwriting because current r...

As a total newbie I may well be wrong, but I chose to approach it from the point of view of where someone like myself would want to live.

Just looking to hear about the pro's and con's as well as any challenges you may of faced when you started out.Any feedback would be much appreciated.