I continue to be shocked at how many smart people fall for this level of chicanery. 

No sense (in my opinion) arguing over $250 on a six-figure purchase price only to end up with the guy who cuts corners to make up for the lower price.

The rates went up big time yesterday btw Once you figure out monthly mortgage payment, property tax and insurance and the total is substantial lower than the market rent then it’s worth looking into.

And, as you have discovered, property prices are much lower in Richmond than in MA.On a personal note, I'm headed to Beverly later this month.

The listing agent did not even respond to my offer and presumably "lost" it among the pile of dozens of offers she received.There are lots of unscrupulous agents out there who will pressure the buyer to accept a lower offer if it means more commission for them. 

The Duplex is in the Parkridge area of Knoxville and is currently two 1/1 on the main level, with a stair case down to the basement that used to be a two car garage.

Any income you show after repairs, depreciation and mortgage interest is taxed at your income bracket at the personal level.

They said they could lend the lower of 90% by the purchase price or 85% of appraisal value. 85% of appraisal value is approx 4K less than 90% of purchase price, so now I have to make up the difference. 

Granted that was a bubble but is it unreasonable to assume that they "should" get back to at least those levels in the next couple years?

Then you have a fun job of shimming the studs to the right level.