It last sold in 06 for $78k and its assessed value is $74,700.00.

But a realistic assessment that includes all the costs associated with owning a residence will almost always end up that it still costs you something to live there.Now, a residence can be a nice savings plan.

Most states/ counties have a website for the Real Tax assessments/ Billing.

The county is assessing the value at $72,200.Seller stated she had a long list of people wanting to rent it at $950/mo each time it became available.

It has additional square footage in the basement, which is divided so each unit has its own private area.INITIAL INVESTMENTPurchase Price $110,000Fix-Up $10,000Closing Costs $2,000Future Cash-Out Refi Cost $2,000Outstanding Tax Assessment $2,500City Change of Ownership Fees $1,000TOTAL = $127,500INCOMETotal rents of $1800/mo: $21,600Vacancy+Bad Debt (10%): ($2,160)TOTAL = $19,440EXPENSESMaintenance ($2000)Utilities ($1600)City Fees ($140)Credit Checks ($100)Insurance ($1500)Taxes ($2000)TOTAL = ($7340)RETURNSNOI = $12,100Monthly raw RV ratio = $1.8k/127.5k = 1.4%CAP Rate = 9.5% against $127,500 initial costTotal Return = Depends on leverageI would plan on this being a long term hold with an eventual exit to another investor, owner occupant, or via a rent-to-own land contract.I would be more comfortable with the deal if I could get the purchase price down and achieve a 10% cap rate.

Tip: Check your county's Property Taxes Records or Assessors website.You can learn about a house:Property tax amounts.Owner of property.If they owe back taxes.If they owe on their utilities.Fair Market Value(What the county thinks the house is worth to assess property taxes.This information can be used when:Finding a house on the market, that selling for less than the Fair Market Value.The Fair Market Value is the county's appraisal.This number can be off + or - $20,000 on real appraisal.A tenant says they have no landlord reference, because they used to own a house.

When any buyer counters they counter to a price of their liking based on their assessment of the asset.

Some information from 6 or 7 months ago when we went over his expenses:Warehouse Unit for business parts & storage ~ $350 / monthAuto Payment - ~$300 / month (roughly 3 years in to a 5 yr loan)Auto Insurance - ~$50Gas - ~$200 (could be higher, drives a lot on service route and delivery)Utilities - ~$200 / monthCell Phone (which is also his business phone) - $75Food - no idea.Cable & Internet - I think he cancelled this, not 100% sure.My basic approach is going to be first, get an honest and accurate assessment of his expenses.

I thought that the tax benefits are one of the reasons RE is a good investment, so to ignore them seems odd when assessing a deal.

Before going on to the 4th manager, I think you need to assess exactly what's going on in an objective way.