I live right outside of Denver and comps in the last few months have been around $290 - $295k (in the same complex, exact same layout, ours should go for a few k higher). 

If something seems off, but you're not sure what, it's your intuition.

For example a lot of beginners will see a cap rate that is very high for their market and think thats a good thing while more experienced investors will consider it as a red flag or an indicator that the property is undesirable for some reason: could be it is in a bad location, is in poor condition, will have limited appreciation, etc. which might be counter-intuitive for someone solely focused on getting a certain cap rate.

(Some people do not know what that means, it might be best to lay out how it works before allowing them to agree to it.)Good Luck!

Odd layout with only 1 full bath. 

Lay out how that would work to the group so upfront they know the kind of candidate they should come to you with and how a replacement tenancy might be structured.

This will lay out all of the terms of the contract prior to having a lawyer draft it all up.

Purchase price: $389,000 The property is a bit unique on regards to its layout, but it ultimately has 3 bedrooms and 2 baths.

EX: Zoning, Code Compliance, Layout, Egress, ADA requirements, Etc.I am working on a couple of these type projects currently and a project specific review/feasibility report will be necessary for you to determine both if you can convert and the level of alteration required in order to do so.

I was also thinking about getting a tankless water heater to open up space to redo the kitchen layout to fit a stove/oven in there as it currently is just a kitchenette.