It's an ok deal and I would only bite if there is much more value plays such as potential for much higher rents after the rehab or things that can be done to the property that can increase the value or income.

Don't buy individual REITS as you are playing with fire. 

By that time i expect the cash flow to play out like this:First floor unit: $1,400Second floor unit: $900 Three garage bays: $330Total expenses (PITI + 5% vacancy 5% repairs (1st and 2nd floors only)): $2,045Cash flow: $585 / month.

I ideally would like a property built with in the last 30 years but then this limits my search.

Of course, that all depends on whether you qualify but that’s the ideal route.

Originally posted by @Wayne Brooks:She needs to work it out with the son.....she pays the balance, he signs a mtg/trust deed to her simultaneous with you signing over the deed.Yeah, that is probably the most ideal scenario.

So I'll first lay out the basics of the deal... and then pose my quandary..... that felt like an elegant sentence lol. 2 unit building near major medical/college campus'Last 5 sales on street for similar properties- 3...

Once I deploy I will be able to rent out the fourth unit and ideally receive positive cash flow from all four units.

Documenting and pushing concerns raised over health and safety issues is also a classic leverage-move played by scam artist tenants.I'm not saying the tenant's concern is unfounded, but tenants asking for over-the-top precautions is going to add substantially to your costs and timeline.    

I'd be conservative and give yourself a range...Ideally you'd hit 2% of your cost in rents, realistically that probably won't happen for new build maybe you'll hit 1%.So it cost say 400k for land and build you're looking at wanting 4-8k per month in rent.In all honesty you're probably better off doing a rehab vs new ...