Potential investment questions

[Benjamin Fox]

Potential property in Bethlehem.  2 unit in need of rehab.  Asking price is 40k (I am sure could be bought at a discount).  Estimate approximately 3-5k rehab. Carpet/paint & low end appliances.  Somewhat of concern is that the last time it was sold was in march and then it went right back on the market...no further investigation into that yet.

1.)For those who invest in the area what advice would you give?  Would you approach such a low cost rental with conventional 20% financing or do you prefer to not wrap much of your own money into it.  
2.)Also, its just west of Lehigh university... is this a decent renters market?  Does it tend to be students or is that more of a Section 8 area as I know some of Allentown tends to be.  I don't spend much time around there and am located in Macungie/Trexlertown area.

3.) If you were to approach this what would be your concerns/red flags...general approach.  I want to use this as an opportunity to gain some insight as to how I should approach this property or the next should I not pursue this.  

This is all in the very early stages but I would maybe heavily consider it if the more experienced opinions on here see it as a good "entry-level" opportunity.  However, if nothing else I would like to gain some insight on the do's and dont's of this area.