Thinking of ways to pass this onto the seller I may be able to get them to do a consideration on these facts.

Your annual return on the $400,000 will be 3.99%.That's a very simplistic calculation that doesn't take into consideration expenses like maintenance/repair, management/leasing fees, insurance, and, oh yeah, property taxes.

Please take into consideration of neighborhood class/property tax/home insurance cost/vacancy rate, they can all affect your decision making process.  

@Will Bert Dont forget to take into consideration water for both buildings and the PLP electric meter into your costs.Also the rental numbers seem a bit low with a 3 bed commanding only $1300 a month.Idk the value of the vacant commercial unit so i cant help you there but where did you come up with the $4500 amount when the other commercial unit you have is getting 3k?

Hi Ben, As long as you are making your numbers work taking in consideration flood inssurance and also the valuation is lower than a non-flood zone one, I will be ok with that.

The military draw down will hurt more than just the rental market for sure.

Another consideration is a cash-out refinance on the property to tap into some of that equity AND generate rental income. 

My background: biologist, environmental consultant, been doing wetland delineations and permitting for a decade and “land development” work (permitting, re-zoning, community involvement, environmental work: everything but the site drawings and construction itself!)

Just as numerous scholarly studies have shown that the number of actively-managed mutual funds that outperform the market (i.e. the index for the relevant asset class) are no more than one would expect from pure chance, I'm sure there are plenty of ill-conceived techniques for REI market evaluation -- but I also suspect there are a couple of 'tried-and-true' principles that are worth consideration.

Financing was an important consideration and I am glad that I found lenders willing to work with me.