1.) yes, if you are wanting cashflow. 2.) depends. need to know the numbers as ned said...

As Ned stated, the servicing company will keep up property taxes the majority of the time and just tack it onto their payoff, many times this is that a property tax lien will take senior position.You won't be able to speak to the 1st as you're not on the loan.

Also the Milken Institute has some free reports that they do on different major markets and as Ned mentioned, you have to even go further than that.

See more here: https://www.biggerpockets.com/blogs/6032/blog_posts/41669-understanding-the-safe-harbor-rules-and-keeping-money-in-your-pocketOr as @Ned Carey mentioned, you can use the Section 179 deduction which allows you to expense, in the current year, property you would normally have to depreciate.

When I did my due diligence I noticed a few things that stood out. 1) as @Ned Carey mentioned some of the expenses were very low and with a building that old, expenses are usually a lot higher.  2) with a more realistic projection of expenses you will see that the ROI and COC is not worth the effort. 3) the layout of the building is not the most appealing which in turn makes it less appealing to prospective tenants. 

As Ned mentioned about Baltimore, there are also several REI groups in Prince George's as well. 

And as Ned says, many Baltimore investors on here as well.

@Lee Edwards you will get great advice here Do everything @Ned Carey is telling you to do I also own a rental in a low income area that I bought for nothing and the rehab will cost as much as the house is worth,but as @Ned Carey said it won't matter cause it will cash flow like crazy.Find good contractors so you don't spend a lot of time doing things twice Do NOT take advice from anyone that is not in this businessGood luck

This could not only get them sued for FRAUD BY INDUCEMENT (we have a local here that is being sued for that at this time), but as @Ned Carey also stated, can cause severe financial harm to a seller.

So yes, the house does have issues and it's my fault for not doing a worthy inspection, but as Ned has said, they've got issues to.