If it were a high end property it may be a necessity item but if middle or lower class it is a negative I personally would not consider investing in.  

@Bob Floss II I agree, one of the intermediate-term tailwinds of SE WI is the migration of some IL residents to lower tax areas, NW Indiana has also added residents from this trend.  

The issue is although it is a two bedroom, the 2nd bedroom is actually a former tuckunder garage, it has a door leading to the outside, no bathroom in the immediate vicinity(the bathroom is located next to the master bedroom upstairs), and is the only access to the utility room. 

I look for 10% COC returns as you can see in the model and per my analysis, you would reach that by lowering your offer.AssumptionsDownpayment: 20%Closing Cost: 6%Amortization: 25 yrsInt Rate: 5.3%Occupancy: 90%Purchase price: $240kPurchase Price: $160k* I hope this helps and makes sense.

For example, is it smarter to buy a higher priced condo on the beach, or a lower price condo a few blocks away from the beach?

Profit margins, after paying lot rent, is slim but possible in the lower quality communities assuming lot rent is low.

Is there a difference of $2000 or more in terms of chase and BOFA charging the lower closing costs than Wells Fargo ?

A good time to purchase a foreclosure is during the pre-foreclusure phase since the competition may be lower around this time and the purchase price you negotiate may also be lower than when it goes public.

Widespread access to high speed internet, the "gig" economy and online business opportunity have revolutionized work, but is it done?

Access equity without losing properties.