Long story short, 7%+ is just where the market is at right now. 

You may be able to market the whole package to someone who may want to wipe out the 3-unit and build a large apartment building with storage units across the road where the gulley is now, where you make a nice profit on the sale plus ruin this guy's green-space entrance to his neighborhood. 

When I was working out numbers for seller financing, I got to the point of giving the owner $315,000 lump sum then taking over the loan at 2000/month however when you do ROI that means you'll get $800/month cashflow at best which is 800*12months for a total of 9600/year CF. if you do 9600/315,000 that means you get a ROI of 3%. which is not nearly as good as stock market. also 315,000 lump sum I do not have :( I need help.

Most landlords in Milwaukee own less than 5 units and it is not a big focus in their lives, they are not on BP, they don't belong to the RPA etcIronically, for a couple bucks you can get a court-tested lease from Wisconsin Legal Blank or from the WRA.Court rulings like this also mean that it will make the market tighter for tenants as landlords are driven more and more into defensive strategies.

Does anyone own or have specific experience in this market? 

I’m not an investor (yet) but as an agent and having been in property management for a number of years, I can say that Taccoa’s rental market is pretty cold right now with only a few rentals currently on the market and a median rent price of $1200-$1300/mo.

You would be looking at 25-30% down minimum In this market.

Understanding the Lease Agreements: There is no lease agreement currently in place, and the tenant is paying about $400 lower then current market rent.

You'll need at least 50 doors in a good market and that takes time. 

If your 10x20 market price isn’t $110 or higher don’t do the project.