If that does not fly, try securing the Vendor's agreement that you will handle the remediation and the cost will be deducted as an adjustment at Close.Somewhere along that path, someone will tell the appraiser to don a respirator and do his job.

I adjust the monthly reserve amount by my expected hold period. http://www.biggerpockets.com/renewsblog/2015/03/03...

Replying to an existing ad just to get it back to the top of the list is considered repeating an ad and can only be done after at least five days from a previous update.

If you had followed these rules, then your adjusted basis in the old property becomes your initial basis in the new property (meaning unrecaptured depreciation is transferred to the new property).  

Is your yearly gross income adjusted for the loss of rent on 1 apt?  

I understand the core concept between getting your main property, and then 3-5 comps you adjust to reflect the apples to apples number, but what I'm failing to grasp is the why you adjust other properties to your focus property, and not the other way around?

After a few weeks of intensive inspections, we successfully closed on both houses.

Do I change up my criteria and investigate this bigger property.  8 units means more tenants, more expenses, and more labor intensive property management but it also means more rents.  

Hypothetical ScenarioI pay 200,00 for a house15 years later I have paid off 190,000 of the 200,000My equity in the house is now 190,000 (not adjusting for appreciation or depreciation)I pull out 70% of what I own in this home because that is the max the bank lets me take out against the propertyA recession hits and every house goes down in value including mineMy 200,000 dollar house is now worth 150,000I still own the house, my mortgage is on a 200,000 dollar home even if it is only worth 150,000 at the momentI am in the same situation as everyone else who has a mortgage and a house worth less than the mortgage they are payingQuestionsTaking my money out of the house has no negative impact on the property right?

However, I wouldn't want to take a chance on unpermitted plumbing and would adjust my offer accordingly.