So my take is that if you start to heavily market to preforeclosures, you'll find those who are going to lose their homes in spite of the fact that they have equity in them.

@Jimmy MoncriefShort Answer:Start at 550k and be willing to pay 650kLonger Answer: I get the same number that you do, but I don't see a management fee, cap ex or vacancy expense in the calculations anywhere.With an 8% management fee and a 6% vacancy expense I see this place losing you about $460/month.I have no idea how much your cap ex costs will be, but I would imagine a place like this probably has a roof that costs 15k or more to replace.

I was given a large investment by a family member and all he said was “don’t lose my money.”

I know that losing the shed isn't a problem, but are you covered for liability?

If your property is in service as a rental for three years or more, you lose the capital gain exclusion and the property becomes an investment rental.

You will not lose...it's like betting on green and green already came up.

The fact that you've overlooked them all in your analysis tells me you're probably not ready to take on a commercial property and it's probably a good thing that you don't have any "skin" to lose on this deal.If you're really set on this property though, you could always have another 20 minute chat with the owner about owner financing.

If they end up in a relationship you may lose them faster than you would with a 3/2 house.

I don't predict a positive outcome and I see many ways for you to lose money, get taken advantage of, etc.

Once anyone "interprets" it then it loses all the value.