Not ideal... but if it were me, I would insist that the price be adjusted accordingly.

My goal is that the seller gets 97% of appraisal, not the customary 87 - 92% of appraisal, after factoring in agents fees, closing costs, sellers concessions and possible price reductions.4.

My first thought was that I would have to paint it a neutral color (probably white), and I made my offer with the cost of painting factored in.

I agree with Ryan,I deal in lower income areas and my cream of the crop are 2/1.. mostly single mothers, 1 or 2 kids, the 2/1 work perfect.

I deal with situations like yours on a daily basis.

2 important factors for a good rental property location is being close to public transportation and shopping.

Why is refinancing from FHA into conventional not a ideal situation?

It doesn't surprise one bit that turnkey sellers list bogus ROI's that don't factor in minor things like vacancy (high in memphis) and maintenance expenses!

Based on those numbers, this looks like a good deal:price$129,000 down25%down$32,250 loan$96,750 rate5.25%term30 years payment$534.26 rent$2,300 NOI$1,150 cash flow$615.74 per monthcash flow$7,388.92 per yearcash on cash23%But there are some other factors in playFirst, what work is needed?

That will be a drag on housing prices because it limits demand.Local factors may come into play.