For $12,500 you will pay a lot higher fees and costs due to the lower amount.

Interesting to hear that offering a lower return may have got him more traffic

Hello Andres,We are currently contractors in Southern Oregon and hoping to start flipping soon, we are  leaning towards Klamath Falls area to start  as the  prices are a little lower over there to begin with.

Big box stores can be a great options with lower end prices as they provide a great guarantee.

The higher number of units you have initially means your vacancy risk is lower overall, which can be huge in managing stress. 

That just seems like a lot of work/risk to get a lower return than you'd get putting that cash in a REIT ETF and calling it a day.I would run away and never look back if I were in the situation you posted.

Another thing: you probably shouldn't try to negotiate a seller down to one price, have them meet it, and then proceed to  negotiate an even lower price.

For example, if the market shows 96.5% occupancy for comps, underwrite it at a lower number, maybe 90% give or take a percentage point.

I started out with a lower income so it was super helpful that I had a super low DTI ratio.

So if you take that same property and are able to increase NOI (by lowering Operating Expenses or increasing rents) by $50,000, you have created $625,000 in value!