I’m not saying it’s a no -go ,but I am saying practice your due diligence and get some professionals involved before you get too jumpy  if those numbers are correct that's about as good as it gets spread wise in the Portland market.. 230k ARV is one of the very cheapest areas of the city if its a free standing SFR detached.. and you say its on septic that leads me to believe its not in the city.. and seller warranting that stuff is worthless.. just try to collect after the fact when he is long gone with your money.. get a good contractor in there to assess the condition and what it will take to rehab.. 30 to 40k in our market is basically cosmetic only.

However, it seems that I would need to find and work with somebody that could come up with a drawing for the space and get the necessary permit with the city of Brantford. 

They will decide if your proposal matches with the city's intent and decide accordingly.

Having said that, Kansas City and Indianapolis are two very good cash flow markets but you have to buy in the right areas.

A good property manager will make or break your investment more than the city.

It's much easier to find good rental homes in major cities where you can find decent homes for ~$80-$100k that follow the 1% rule for rent and can cashflow.

Next time, All repairs paid for by the buyer should be done through a fully funded escrow account with the owner signing off on the scope of work and city permits. 

Do I do this through the post office or the city?

A very experienced BRRRR strategist in the Kansas City area suggested him and I form a partnership.

@Dan Heuschele I think we are on the same page that even the rough parts of San Diego are mild compared to some of the larger cities, I just don't want people thinking Logan Heights is anything like some of those areas you mentioned.I feel pretty optimistic about the potential in the area, you should check out the San Diego City revitalization plan for Southeast San Diego if you want to see what might be in store for some of these areas.