It is hard to say exactly the amount it will cost you in your area, and you may need to adjust for that.  

Does anyone adjust their expenses for a condo rental?  

Option One – Commercial Loan:Purchase price $395,000$98,750 (25%) down, 25yr amortization at 4.5% with rate adjustments every 5 years.

I ran some comps, made adjustments based on size and came up with what I thought would be a reasonable listing price.  

It's a crazy scenario but if you have no skin in the game there is nothing really tying you to the property other than a perceived future profit, which may or may not come to pass.Now, having said that, after a few deals are under your belt with that lender I bet things could change to better suit your needs :)Regards, Lenny

CMA'S need sales and building information  AND a reasonal amount of knowledge of the market to make accurate adjustments.  

I'd bet there are improvements that you could for 1-2k (or less) that will make it nice.

Maybe you can adjust the rents to the $1,000-$1,300 market range that you mention, once the current tenants' terms expire, but I would probably expect some sort of compensation (price reduction) from the seller for the inherent negative cash-flow situation upfront and for ultimately having to turn both units over within the first year.It couldn't hurt to get in and at least check out the interior of the property if it still interests you at this point.

- Are they giving you the adjustment entries at the end of the year? 

I'm thinking emailing him the bid as well as well as my pictures with a take it or leave it is probably our best bet.