(This is proposed in initial conversation with seller, same as proposed price.) ( I am assuming this is a balloon payment)I currently don't have money for the DP of 10-15% but I have enough cash reserves to acquire this and maintain my other properties.Property is in sellers market. 

I think it helps to have a candid elephant in the room conversation with the tenant, that way, if you choose to part ways, its in the most human(not humane) way possible. 

Great question and I love the conversation that it has started. 

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $230,000

Cash invested: $60,000

purchased this home to live in, garage was already converted with bedroom, full bat...

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The old blacktop looks pretty well worn.As far as doing different things, It really comes down to who you project your residents will be for the building, and what you need to do to attract them.Gentrification means replacing the population of the area, and sometimes places get fixed up, but the surrounding area still has problems.It comes down to who you think you will attract as customers, and what those customers will want to make the buying decision.I just kind of ball parked some things based on my knowledge of what residents in tougher areas seem to like (based on my conversations with them over the years).But really its up to you to make a product that your intended customers will want to lease...

I do have a friend that turned his van conversion business into now a 7 employee business and growing (overland van project).

They always respond and seem delighted that you have asked and if they do have any questions, this is a good time to have that conversation.

I'd even go as to recording the conversation.

Properties acquired for development, rehab, or conversion are generally held for sale (not investment) and will not qualify for 1031 Exchange treatment.