I could see this working if you tried it this way:-buy a very distressed property that somehow still qualifies as "livable"-perform a live-in-flip style operation, minus the flip at the end-do a cash out refi based on the higher value after renovationYou'll have to make sure your cost of renovations are much lower than the equity built.

The reason he asked was there's a high end, and low end appraisal depending on what you need it for.Now, if it's intra-family, and you're getting it below market, to play it safe, do the sale based on the appraised amount, and have the difference handled as a gift.

If not, then I doubt the seller will be willing to give too much based on the fact he/she knew it was old and probably took that into account with their list price and ultimate contract price.

@Wayne William don't try to assess a property value based on taxes or tax assessment. 

Whoever is telling you a depression is coming is not basing it on economic principals. 

Just wondering if this is a good sign for buying...Small town, tons of growth in the county....someone just built a 42 unit rent based on income smack dab in the middle of said small town. 

I am sure that any new comer  would believe that he is properly vetted just based on that alone.

Get estimates for other services - lawn care, snow removal, etc.Use these estimates to then run your analysis and figure a maintenance schedule and CapEx budget based on the inspection.

You can make sure assumptions based on the condition of the neighborhood and outside condition but there is always a wild card involved. 

Based on the zoning I can do nearly anything I want.I am looking for a low neighborhood impact business that has a high cash flow with low entry.My thought is in buying shipping containers and packing them in tight on the lot and creating a commercial storage business.By my estimates the property could generate up to $96k a year with less than 1 year's income to reach full build out.Any one have experience with this model?