Think about it this way: just about every person you know, see, or talk to has flat or negative value - meaning if you sold off all their assets and paid off all their debts they'd still owe money.

If it doesn’t, then the option becomes worthless.In a market with flat to falling prices, you can get caught on the wrong side of locking in properties at current prices since that option money goes out the window...If the property does increase in value, then someone might want to buy the option off of you.

So you may have to stop accepting payments from them altogether.

Several investors are having success with converting their 2 flats into single family homes and selling.

I'm leaning towards either pulling out of the deal altogether (since there are also subject to (repair) clauses in the appraisal estimate) or as many of you suggested, have the seller ensure the tenant vacate the property before I close ... but I would also ask them to come down on price and meet the lower appraised value.

@John Moore Most management fees typically are percentage based, although some companies do offer flat-fees.

What you could have is a mainline that is flat or trapped , and the paper is not flowing to the tank creating the back up 

I have a group of roommates renting one of my properties right now, but I did just a flat rate.

There are 45 lots altogether.

Water is flat rate based on fixture count- no meters.