A lot of sellers are burned-out landlords who like the idea of "passive income"/mailbox money after years of chasing late rent payments, dealing with tenant BS and maintaining the property (I use quotes for "passive income" b/c no income is truly passive IMO, a wise seller will still pay attention to what's happening with the property in case they need to take it back, but collecting payments like a bank is generally easier than collecting them like a landlord, you can set up ACH with the buyer's bank or hire a loan processing company to handle it). 

I agree that you would have a hard time asking them for a higher amount if they can see your properties online listed for less.

Is there a possibility of increasing income?

“This highlights the importance of regular tax-loss harvesting in your after-tax nonretirement investment accounts throughout the year.”Contribution to a Traditional IRAAnother option would be to contribute to a traditional IRA to reduce taxable income, subject to contribution limits and deductibility phaseouts, says McGuff.

She also told me that the owner is from Mexico, he does not report everything and is earning more income than reported.  

I lived in TN for several years (Hickman County) and am considering retirement there...especially since there is no state income tax.

Investment Strategy:Buy and HoldInvesting herebecause: Potential to Appreciate in Long Term (10yrs+), want to build NetWorth, Affordable in my budgetYear 1 Evaluation: Gross Monthly Rental Income = $2,042.50 Monthly Cashflow = -$76.05 GRM = 12.79 Cap Rate = 5.12% CoC ROI = -1.11%Hoping that theinterest rates go down so that the monthly cashflow becomes +ve.

I live less than 2 miles from this place and unlike my number, my home address is easily obtainable online.

One month or one decade selling a flip is an active business like selling hamburgers, and pays regular income taxes not capital gains.

The tricky one is the rent to income ratio and how it is related to the median family income.I did note that at lease one other poster was advised to always use the low barrier screening criteria to avoid potential lawsuits.