I'm making the downstairs into an apartment for myself and then renting out the remaining 3 bed 1.5 bath  upstairs. 

The trouble is, by the time you actually get to the date of the sale maybe only one or two of the initial ten remain on the schedule -- and everyone else is bidding on them too.  

I definitely think the land is a massive part of the value - as this is one of the remaining relatively large plots of land in the town - most other plots now have horses or have been subdivided, plus this backs up to a beautiful reserve.

So a lot of the uncertainty was removed and the main variable that remained was our construction cost.

If you or another sponsor is lacking in an area, bring in other guys that fill the remaining needs/ requirements for the lender. 

The landlord kept the rent low and the tenants remained wonderful tenants.

You make payments for a couple of years, but then a recession happens and the value of the home is much less than the remaining mortgage, so you opt for foreclosure.

.- The $75k remaining on the house is also just a PP&E item in the balance sheet that gets reduced by depreciation over time.- The $300 of repairs and maintenance should be expensed.- The $500 should be split into 1) Principal ($300), 2) Mortgage Interest ($150), 3) Escrow/Taxes & Insurance ($50).- I assume the $300 of principal would only impact the balance sheet and not the income statement.- I think the Mortgage Interest $150 and Escrow/Taxes & Insurance of $50 would be on the Income Statement as they are expenses that are not capital in nature?

The remaining boards are cleaned up (nails & screws removed, cleaned, and address any protrusions). 

And I strongly suspect that Tenant Alpha ALREADY let his brothers move in a few months ago, without first getting our permission and approval of the new occupants, which may be why they stopped paying rent at the other place.CURRENT QUESTIONS AND CONSIDERATIONS: This house will remain a long-term rental buy-and-hold, and since there are a lot of things that make these tenants undesirable to most landlords and lenders, I believe they likely won’t be able to find anyone else willing to sell or rent them a place … which means they’ll likely stick around long-term and pay timely.