That's very affordable.You should be able to check comparable rents on-line to find out what rents you could reasonably get for those two units.Regarding legality of two units on one parcel of land, check with the local Building Inspector, or Zoning Board.If it wasn't a three-hour drive from me, I'd buy it.

I have called a few major insurance agencies (Farmers, MetLife) and so far the quotes I am getting sound fairly outrageous, at least compared to what I am seeing across the site and my expectations.What kind of rates are Chicago investors seeing for multi family apartment buildings, and what agents/companies are you using.  

They will also provide you w/ information to evaluate a property (Comparables) Establish multiple relationships w/ wholesalers Establish a minimum profit criteria- The right property is the one that meets or exceeds your profit criteria

Why the heck do I want to go to AZ to invest in some stretched 6-7 cap rate when I can accomplish the same thing in my San Jose market, which is just as tough as your market I believe.  3-5 caps are great compared to 10 cap IMO.

The rents are low compared to the big city 50 miles away, but many of his costs are lower, like dumpster.You mentioned my book. 

All I see it doing in my area is making folks have to buy a slightly more reasonable house compared to what they're able to qualify for currently. 

Everyones been very satisfied.  

What he is offering is:-His team will do the due diligence on the title to ensure it's clean-acquire the property from auction with room to make 20-50% profit-provide actual comparables-consultation prior to auctionHe wants a non-refundable payment of $2500 to set up an account and the $2500 per property making it $5000 up front (in addition to actually financing the properties in question).

How do I come up with comparables if the house is the biggest one in the subdivision?

I feel like it could be a great investment.If you're satisfied it will work, go with your decision.