We recently experienced this exact scenario...the landlord hadn’t raised rents in almost 30 years and the tenants had heat/hot water included!  

As we now close our 14th month of investing we have completed well over 30 deals which include acquiring over 20 rental doors, 6 flips, and several wholetail deals. 

Attached is the result from DealCheck.IO, and includes Capital Expenditure of 5% and Property Management of 10%.I don't know whether this will work or not, it's a PDF file.

This current BRRR will actually profit about $350/mo positive cash flow after all expenses including holdbacks for vacancy, repair, capx, etc.  

Here are the numbers:Original Loan Amount: $ 42,700.00Loan Origination Date: 12/09/2013First Payment Due Date: 01/01/2014Last Payment Date: 9/27/2018Current Loan Balance: $ 41,802.77Current Interest Rate: 9.900%Current P&I Payment:$ 371.57Current Escrow Payment:$ 30.43Maturity Date:12/01/2043Term Remaining: 302Loan Type :CFDFMV: $87,500The WorkoutWe picked up this asset for $18,500 ( 44% of UPB)Expense Cost: $2000 (Includes, servicing, initial due diligence, forced place insurance, back taxes and misc)Contingency Fund $2,500All in Cost= $23,0008 Months of Payments = $2968Reinstatemet fee from borrower = $2000Total Income received $4968We sold this property after 1 year as a re-performer for $35,500 (Approximately 85% of UPB)$35,500 + $4968 = $40,468 Total ROI = 76%We're excited with how this one turned out and can't wait to see what we will do with our next one!

As a licensed CA agent, the Seller probably has a duty to disclose that they are a licensed agent.You didn't know they were an agent when you submitted your offer, so you didn't include it in your offer.In their counteroffer, they are adding a disclosure into the agreement that they are an agent, as they are presumably required to do by the state of California.While I don't know the whole circumstances, nor am I licensed in California, that seems fairly normal to me.

Your total expenses (not including debt service) is coming in at 30% of GSR, that's really low, like REALLY low.

They have a history in the town that includes loosing their children for undisclosed reasons.

Eliminate all debt, including safe-ish debt like student loans?

Most of the downtown business has moved near this interstate and intersection including a Walmart.