I am not sure how MB would compare to downtown. 

For all those using their own experiences, and their own markets, and trying to compare that to any other market (like Austin)...you can't do that. 

Investors are jumping in and snapping them up fast because compared to most other large cities the prices are very good.  

At this point my partner's equity would get a little smaller each month compared to mine as I put all my profits towards the faster pay down but they would still be making enough to live comfortably until the 1st property was completely payed off in year 10 and cash flow increased from ~$120k to ~$228k.

My bottom line suggestion, call the Housing Authority for the county, tell them you have a property that may qualify  and just ask them how it works. 

Account ClosedIncome taxes are normally not calculated in cash-on-cash return calculations because everyone's tax situation is different.For sake of comparison - the cash-on-cash return should be comparable on a level playing field.Person A - $100 return on a $1000 investment.

A in-law suite is not a legal rental so the appraisals are not comparable.

Lenders have different lending terms and conditions compared to their competition.

The only thing the seller said she is willing to do is to get on the phone with the bank and authorize me (or just conference call the bank) to discuss loan condition to sell me the house. 

This isn't bad compared to a lot of schools, but was still more than we wanted to pay.