I am pretty smart however fear of the unknowns do exist.

If market rent has dropped anyway, this may simply be aligning with reality.The real question is:Would you rather lock in a proven tenant slightly below market, or risk vacancy and an unknown replacement?

If it's a single-family, there's rarely anything other than "unknown" in the disclosures.

Usually, if someone is trying to unload a dog, you should expect a lot of issues...cosmetic, mechanical, structural, exterior surfaces, as well as Tenant issues, known or unknown.

2 family home sold in 2025 for high $400’s (2) 2 bedroom units Approximately 2,000sqft Condition is unknown Price per unit is approx. $250k/unit and $245/sqftSeems pretty on par from what we’ve previously evaluated in the past.

Properties that were originally built as multifamily (often 1960s or newer) tend to come with fewer unknowns.

Apply for initial house permits and secure permit 45 days.It’s tough when some cities run you through a difficult process and of course the unknown complaints from surrounding homeowners.  

If I am reading your numbers correctly you are saying that you are cash flowing $876 annually for a $53,000 investment plus your time, risks and unknown expenses e.g. loss due to vacancy, cleaning after a tenant destroys the property, painting, carpets, utilities when it is vacant, new water heater, furnace, air conditioner, leak in the roof, broken or leaking drain pipe, sewer, water pipe, gas leak, or replace or repair leaking faucets, broken screens, repairing locks, trash removal, city sewer use fees and a lot more. 

Same with auctions — they can work, but only if there’s real room for error once you factor in unknowns. 

Unknown = risk.