The house should appraise 20-30% more than cost to build or it may not be worth the exercise unless cashflow is really good. 

But they'll also learn how to communicate expectations and how to properly assume the role of a "Professional" guiding a client.  

With time being the most valuable resource, real estate is a partnership game, especially if you hold a W-2 on the side ;) This being the case, what role will you play in the team? 

Even if these these were on the tax roles for only $1.2 million, that's still $36,000/year, which is $9000 more than they are saying are for all expenses.

I understand that when determining the ARV of a prospective property comps play an essential role, however in some markets determining the ARV of a residential multi family property has been a challenge for me.

It's the same as FHA or USDA, which are very strict ,but VA adds a mandatory wood destroying insect report, which the seller is required to pay for.In addition, I have personally witnessed appraisers who see it as their role to "fight for the veteran" and by that I mean to hammer the price down for them.The most recent case was a home that started life as a Campanelli Ranch. 

The tenant had 3 years to exercise his option to buy , buy failed to.

Maybe some day I will take on this exercise. 

Sigh... we really liked this one, but it was a great exercise in running numbers, which brings me closer to the YES property I'm thinking. 

Hey Alexander I'm new to the landlord role myself.