Obviously he used lease purchase methods because a regular "sale" with a deed transfer wouldn't have made it past any cursory title search review, as there were still active foreclosure cases on the properties.

@Nicole Williamson I am in TN, and normally this wouldn't be a concern.

My main concern and the catch is that the market for such a business is limited.

., when the mortgage is gone and we're paying this fee every month for the remainder of eternity) how big of a difference does that make as far as cash flow is concerned?

If the value comes up low in either of the latter two methods, you can then request and pay for the full interior appraisal in hopes of getting a higher value.

Also, Not concerned about my profits.

People get frustrated with them because they move slower than other investment methods and a lot of people need ways to get capital so they can buy rentals which forces rentals to come later rather than sooner, but in general, starting with rentals is excellent because they teach you the fundamentals first, then you can use those to be really strong in other areas.

Toilets, tub, moulding, carpet.Needs new kitchen, room, rugs, spackle paint, driveway, 2 whole bathrooms and 1 bathroom updating.My concern is the two upstairs bathrooms have this gaudy italian tile which only certain people would like.I am thinking if I took the low comp, $425 *.70 that equals $297 - $100 in estimated repairs, that an offer of $200 is where I want to be.

This is obviously risker to the partnership, but we have enough equity in the deal that we're not concerned about getting upside down.

But I'd heed @Thomas Williamson 's advice as a local.To keep your deal, I'd ask for new leases to be signed by the tenants that get your rents to $1000/month through whatever graduated method you'd like.