@Donald Dickerson,Considering how prices have gone in most of our lifetimes, the idea of "millionaire" has been rather diluted, I think. $1 Million just doesn't go as far as it did 50 years ago. 

Thirty percent of something is a whole lot better then 100% of nothing.  

Case in point: Over the five years that ended in July, the median home price has rocketed up 94 percent in San Mateo County, 74 percent in Santa Clara County and 67 percent in San Francisco, according to figures from the CoreLogic real estate information service.

These are true costs that you’ll experience each year while you operate a rental.Your expense factor on a single-family home normally runs around 35 percent of your rental income.

Not sure if the percent is readily there but you can pull all for sale and all sold and divide.

So for that price, I'll get some cash flow if I put 25 percent down. 

If an asset based lender will lend 75 percent on a property does this mean that no down payment would be needed if the property was worth $100k and you acquire at $75k?

Inside i was upset but at the same time I learned A life time secret on how to make wealth.

Psychologically, the seller gave you a bit of a feeling of ownership(after which you now have some fear of loss,) and when people own things, they tend to place a higher value on those things prior to taking ownership.Why not try this- estimate the annual cash yield on your initial investment(under the theory that the units were all like the initial 3 units,) then adjust your offer downwards such that your percent yield on capital and time invested is unchanged?

Here is a link to the spreadsheet I made: https://docs.google.com/spreadsheets/d/1_Rg21utKgh...This is what I did to come up with the spreadsheet:Home Value= $96,000Up Front Costs20% Down= $19,200Land Transfer Tax 1% = $960Appraisal = $300Inspection = $100Legal Fees = $900Lock Charges = $250Loan Origination Fee (1% of 96,000-19,200) = $768Coop Application Fee: $300Commission 3% = $2880Title Search, Title Insurance= $875TOTAL UP FRONT COST = $26,533Recurring Monthly CostsProperty Tax = Covered in HOA FeeHomeowners Insurance = $28Maitenance (1% per year) = $8030 year loan @ 3.45% = $343HOA Maitenance Fee = $350Tax Deductions = (Interest+HOA Fee)* 31 percent marginal tax rate = $174 (Savings)TOTAL MONTHLY COST FIRST YEAR= $626Assumptions: vacant 8% of the time, 2.3% housing price increase per year, 2.3% inflation, 2.3% rent increase per year.