We have run into this, avoid the property since you won't know for sure if it is legal without going through the process which will take a lot of effort and you'd want a sizeable price reduction to go through the effort.

Combine that reduction in W2 income with the debt from our two properties and we are finding it hard to qualify for more than $300k.

Getting the sellers to pay for some needed improvements with their equity, not price reduction.

My angle to this "problem" would simply to have a reduction in the purchase price for the cost of the job.

Will be buying another in the immediate future.Bigger Pockets was worth it's weight in gold just for saving me from Morris Invest.

Although it is somewhat more complicated than calculating the weighted average cost of capital (WACC) of a firm, there are several methods that investors can use to find an appropriate capitalization rate, including the following:Build-up methodMarket-extraction methodBand-of-investment methodReal estate valuation is often based on strategies that are similar to equity analysis.

I'd want a real reduction in the price of Texas property, to increase cash flow, before you seriously consider this. 

Debt reduction, rent growth, asset price growth should more than offset the minor loss.

"A reduction in force is a thoughtful and systematic elimination of positions.

There're plenty of case studies for everything, including losing weight, making millions, finding your perfect life partner and yes, cost segregation.