Current comparable price is $178,000.

You might first ask him what he wants for the property but before you do, I would suggest you try to get an idea of the market value by checking out comparable properties in your area.

If you price the coin-op lower than comparable laundromats around town your tenants will appreciate the benefit (but likely not abuse it).  

I haven't even done an MLS search yet but I'm planning to do that this week just to compare between they and Zillow as we all know how unreliable Z can be.http://www.zillow.com/homes/for_sale/San-Diego-CA/fore_lt/pmf,pf_pt/54296_rid/33.168594,-116.416626,32.46806,-117.785798_rect/9_zm/

I recommend finding a market that has the following: good employment trends (it should beat the national  unemployment rate)job diversity (no one industry makes up more than 40% of the economy - the lower the % the better) good supply and demand - check out the availability of homes compared to the # of people looking (it's called the Absorption rate) a good team that is experienced and you trust (probably the most important because the money is in the execution of the biz plan, not creating the biz plan) 

Basic pointers I'd recommend is to start looking online at your own market as you're learning the concepts to compare them with your market, and get involved with an investors association down there - If I could it would be my first stop in deciding if REI was the right place for me.Welcome to the community Aaron!

I guess what I am asking is if anyone has deals with their city or county as some way of rewarding you adding a substantial amount of money into the city's coffers.

I would say if you are saving $2000/mo in rent from comparable apartments that would be considered a success.

Inflation won't matter in a Cash on Cash analysis, since its purpose is to give you a picture of how much actual cash you are receiving compared to your equity.

Clearly, it demonstrates your ability to initially transform a bad situation and coupled with that you showed your tenacity, decisiveness, ability to execute an action plan and being sequentially rewarded along the way with higher sales prices.