I'm paying a massive commission so that you can interpret (and help me articulate) my needs and deliver a highly personalized set of potential properties with your thoughts on how each of them may or may not completely satisfy them.  

If you take the time to articulate to the seller that you intend to convert the POHs to TOHs and therefore all that income will be going away, the seller may see your point and accommodate you with a lower price. 

A better comparison would be between two general contractor's estimates, with a well articulated idea of what your finishes are (carpet vs. hardwood).Bottom line is there is a lot that goes into these estimates, and the more you get, the better you are.

Based on the structure articulated in the book, if I structured the deal to be a 24 to 36 month rent to own lease and incorporated the 3% increase in price each year, the property would be around $250k. 

My guess on your folks long term success would simply be the magic formula of rising rents over time, reducing debt (and increasing equity) as your tenants pay down your mortgage, and in, many areas, handsome price appreciation....Over the long haul it has been an effective formula for many investors even if you can't articulate it (the home prices and rents have just gone plain gone up over 30 years...)Best of luck Philip....

Hope we can learn something from this :) If you're new and decide to start yet another thread like this, make sure you articulate your goals and situations so it's easier for people to give you advices.

Really appreciate the detailed and articulate advice - your experience is definitely very impressive!

He did a better job of articulating them than I could have!

I think I always understood that income properties were an important piece of wealth-building, but until I started reading BP along with devouring some of the most recommended books, I suppose I never was able to articulate and understand how and why appropriately.

You have to articulate what you want and are trying to do before you can connect up to the right broker/agent that focuses on that niche.