Mortgage, utilities, maintenance will match or exceed the purchase price and out strip normal appreciation which historically track annual cost of living increases. 

Red flags seem normal based on the value of the property.

Cosmetic fixers with good bones are best since cosmetic items normally add the most value vs cost to fix them compared to the stuff you don't see (plumbing, electric, roof, etc.).

While I fully recognize this is a business, given way he treats the property and always pays on time, I will not consider evicting the tenant, but I do want to take steps to normalizing the rent.

Offer based on that - sometimes that means you offer over list price, sometimes it means you offer under, but remember we've already disregarded the list price as irrelevant, so that doesn't matter.I've seen top 10% buyer's agents run a CMA on the listing agent, to figure out if they normally list for 10% under value, 25% under value, or maybe only 5% under value, and track normal days from listing to pending for that agent.

Spill the beans as to what you want AND the funds you have to close with.The agent will NOT be thrilled it you're looking for Wholesaling or Creative financing, but if you can close on a normal commercial LTV, you will be days ahead of other contenders.

Sellers can be somewhat leery of FHA financing because normally it takes longer and is more involved than the conventional loan process.  

Which is ridiculous in normal real estate...

Hi Micah,Normally you wouldn't know what a bank pays for a note because the only thing publicly disclosed is the assignment of mortgage which only includes the original mortgage amount not the note sale price.

I think he normally works w/ contractors, so he does these side jobs for cash - his name is Nixon PM me and I'll send you more info!