However, when you add PM and CapEx savings to the Operating expenses it drops your NOI tremendously and then when you multiply it by the Cap Rate you get a much lower valuation of the property than the listing price. 

Those in the lower price points are production oriented they do the same cut and paste from previous projects on various elements. 

That's partially because our Airbnb prices are a little lower on average -- because they are integrated with our pricing software Wheelhouse, we time discount prices. 

As such, I agree that the maintenance costs could be much lower.

Here's what it looks like:Purchase price = $300kRental income = 4 x 1bd/1ba @ $500 , 2 x 2bd/1ba @ $650 = $3300, seller thinks  1bd's can go up to $700 and market research supports that Taxes = $200/monthEstimated expenses = 1300/month (10% each for vacancy, CAPEX, and repairs and $200/month for insurance)NOI = $23k at lower rents, $33k at higher rentsCash flow = $500 at lower rents, $1300 at high rentsThe property is in a C neighborhood that is gentrifying.

In 2017 when you renew the lease do you have to lower it to $1142? 

Maybe I’m not understanding things correctly, but wouldn’t the risk of a major fire coming through again be lower since much of the old kindling has now been burned?

Why not try the numbers at lower offer prices to experiment with the numbers you want/need and figure out the most you are willing to pay for it.

They are living in a market they are priced out of and look to Midwestern cities for lower entry prices.They do not have the time, ability &/or desire to be an active operator in the business of rental real estate.

But I declined and said the lower offer stands .