And we were actually optimistic on the appreciation side but it looks like we're going to have to tighten up the numbers so we can see a more realistic view of what's going to happen.Thank you guys for the input it is so helpful!

This will allow me to fit 3 cars in a more effective way so that they are not blocking each other when parked. 

Blanket loans would be a more appropriate product for this scenario.Terms 5-7-10 ARM, 15 -20 -30 years amortized with a balloon payment and strick prepayment conditions.  

I have done deals like this where the seller owns the property outright, likes the monthly income, but wants to take a more passive role in investing and not get bogged down with day to day operations.

A consult your advisors clause in an offer letter might help you avoid legal repercussions but the decision to move forward with a deal or not should face a more stringent test than, "Will I get sued and/or prosecuted".I don't think you should automatically proceed because someone appears to have their wits about them.

This is a more complex strategy but can really boost the return of your IRA thanks to the benefits of leverage. 

If so, you need to divide out the income to get a more accurate in place cap rate. 

On a more general note, how do you normally judge and determine profitability of development projects?

For example, if you want to buy NNN buildings or industrial, learning about wholesaling single family homes makes no sense.If you could clarify what you're looking for, we could point you in a more helpful direction.Good luck!

The house is a more expensive house in the low $400s which was the most expensive rental I owned.