Yea I am here to meet people who can help me retire early and do deals consistently.

I finally received a demand letter from a "nonprofit attorney" representing the tenant, claiming that the tenant was living in uninhabitable conditions—typical for a non-paying tenant, I guess—and now she wants to "renegotiate" the rent and keep living in the same space.She has been filing complaints with various government departments, but all the cases were minor and have been closed.

What made you interested in investing in this type of deal?

For rental properties, there are primarily two types of taxes you have to deal with; property taxes and income taxes. 

What made you interested in investing in this type of deal?

When I look at the comparables over the last 3 months the average sale price is about $235 per square foot, which would put me only at a resale value of $495,000 ...not worth it.However, there are comps from January of 2022 through July of 2022 that strongly support $300 per square foot putting the resale price of the house at $630,000... totally worth it.My real estate agent, that I've  worked closely with for the last 4 years and have probably done about 15 deals with, ensures me she will definitely get $595,000 minimum for this property, and if I knew that for sure I would do the deal.

@JD Martin a long time voice of reason seems to say at least 75% empty.So either you ask for an extension or cancel the deal as I doubt a reasonable seller would take their property off the market that long. 

New construction at that is a plus.I've been digging for a similar deal myself for the past year in California, but it seems that there's nothing out there that will lead me to break even on a monthly basis unless I do at least 15% down.

Good news, you may be able to take accelerated bonus depreciation / expenses repairs immediately and get a tax advantage from thisBad news, you still need to deal with this issue from tenant/PM.I found this thread from @Bob Beach helpful where he shares some read flags on property managers. 

And you also need to be super careful about their 1-yr contract if switching to different a pay model (We are dealing with them for $27000 early cancellation penalty now) Although they have many functions such as generating one listing from Guesty and pushing them to all different platforms, we realize that pushing to multiple platforms is not necessarily generating more income.