Here are the basics of the deal:Buyers are asking $59,000ARV is ~$100,000Repair estimate is just shy of $25,000We settled on a cash offer at $40,000The buyer is gun shy and does not want to deal with counters after inspections etc.

If you haven't looked at 100 apartment deals and spoken to property management companies on running scattered site mfam (apartments that aren't big enough to support onsite staff) chances are you're in for some surprises.Don't be arrogant and in a hurry like I was.

They got an offer over 150K sight unseen, but after inspection pulled out of the deal.

Costs about 8% to sell a house the regular route. 10% by the time the inspection report and negotiations conclude.If it's been at least 366 days, taxes shouldn't be a huge factor. 

10 unit apartment (1bed/1bath all units) vs 10 single family home portfolio (3bed/1bth)

If you buy a 4-Plex and decided  to pull a permit for one Unit to start your renovation project and not the other 3 can the building inspector (plumbing, electric) mandate that you show the other 3 units during the first unit inspection ? 

Similar properties nearby but yes, it's definitely not a traditional apartment.

With NO contingencies, ie, no inspections, no mortgage clause, etc.  2nd: 65% of market with x down and bank financing.3rd: 75% of market with seller financing.Depending on the 'hotness' of your market and the motivation of the seller, your percentages can vary. 

Have the seller obtain the proper certificate of occupancy, or else be prepared to walk from the deal.If you close on it, you will have a single family with an illegal extra apartment. 

And if possible also build an accessory apartment on our new home and rent that out.What say ye BP?