Amenities, location, style, condition, lot size, neighboring homes, etc all play a role in the ARV.I tend to disagree with some of the comments above as I do not believe them all to be accurate, however, the important thing here is to learn how to properly evaluate a property's current and after repair value and there are many factors involved in this process, not just bed/bath and square footage.

He's looking at getting a smaller dog but obviously, wear and tear as well as taking proper care of it is a concern.Thomas S. 

Zillow is ok for sold comps if you have the knowledge to properly comp stuff out, just don't use Zestimates.

You're not aggressive enough with saying - I'm happy to pay the $3000 for the cabinets AFTER they close properly.

Long term - it's almost impossible to properly charge the right person for damage to the common areas.

If it is month-to-month the lease can be terminated at any time by either party with proper notice.  

I played around with some numbers, and it would seem the only way this property would properly cash flow would be if the investor picked it up somewhere around 168,000.

I believe if I could explain it properly he would definitely go for it. 

Proper planning and budgeting is always key. 

Serve proper notice on the landlord that the lease will be terminated and no renewed when the current term expires.If the co-tenant wishes to remain, s/he will need to enter into a new lease with the landlord.