That includes $10,000 estimated for rehab cost to a kitchen and bath in mother-in-law suite we will be starting in the next few weeks.

If you're buying a good rental property, chances are the returns will be higher on the investment property and it'd be better to use what you can and snowball that into the investments, via mortgages on the properties.

Hi all,On average, about how much is a property discounted if it requires an estimated amount of work done?

I too would get an extension on the escrow and my contingencies and hold off on inspection until you have green light.If the seller is getting sued and it is moving forward there is a good chance of him filing BK.If the property is directly involved that suing party may file a lis pendens and could tie you up.What are your damages if seller can not perform, you can file a lis pendens and ties it up on your end.Get title info if you can and seek counsel of attorney or be ready too.Can you close before all this pans out, maybe and if title is clear and you cover your bases might be something to consider.Or might be advisable to let it go and save yourself the headache but that is dependent on the deal itselfKeep us posted

Our current home was on the market in 2005 for $450k (3Br/1.5Ba ranch, full unfinished basement with Bilco doors, on 3/4 acre next to a golf course), languished & pulled off market before we had a chance to see inside. 

Not a chance.  

The estimated NOI and cap rate value the property at around $750k.Are there any other creative financing strategies that I could employ to acquire this property? 

NOT A CHANCE!

I pretty much came to this conclusion after making the thread but now I'm much more confident this is the way to go - I'll suggest they keep the house and take out a home equity line of credit while I act as a the project manager so to speak for a cut.It's good no one will pay capital gains tax, but what kind of tax can I anticipate for either of us in the state of TN (even a rough estimate would be helpful)?

@Nate Ollmann, meaning I estimate my costs will be a little higher than the assumptions you’re making.