which is about 5.5 percent on my equitysecond one is a old single wide mobile home that I get about $500/month rent after expenses;  the underlying land is now worth about $175,000;  which is total equity for me, since it is paid off;  so that would be about 3.5 percent on my equityproperties right beside each other in a very hot area, which just keeps getting hotter every year, with properties harder and harder to find there.  

If you subject property is 1500 sf, you need to find comps in the 1350-1650 range (+- 10%, which can also be +- 20% depending on market and circumstances), adjusting for condition, location, amenities, DOM (days on market) is all the art portion.

In terms of rehabbing the property, the workflow can range from throwing a coat of paint on a wall or two, to an entire gut of the mechanicals, windows, siding, and flooring.

There are a few ways to go about it:Find a house in your price range with as many rooms as possible and rent out all the roomsRepeat option one but find a house that could be converted into two units - you occupy one unit and rent out the other unitIf you can find a house to convert into two units, you might want to look into the short-term rental rules in your area to increase your cashflow even more :) 

My units are larger 3 and 4 bdrm townhomes, 1600-1800 sf each, intended to serve families.With a mid-range construction budget, what items are worth splurging on to get improved rents? 

Any suggestion on how to go about sending the offer ( hard copy / Phone conversation) and how to express my interest in the property to the current owner?

I know there is FHA available, but I'm not confident I could secure a deal that's in my price range with FHA financing in the current market. 

They have a wide range of topics and tons of classes related to REI.

I have the area pick out, the price range and the condition of the property I am looking for.

I knew the make, model, mile and year and price range I wanted.