The HOA fees really can eat into your profit and be unpredictable in the long run.I would consider a duplex.Talk to a realtor and see what's out there.  

Because, let's face it, life can be unpredictable and lawsuits are never fun, you want coverage that protects you from potential lawsuits.Finally, don't cut corners.

As an investor would you take unpredictable profit, or low cash-flow in a rising C class neighborhood?

Life is unpredictable. 

I haven't been looking at MLS so I'm a bit naive to this area, but it bit unpredictable at times.

Are taxes are a nightmare and just pretty unpredictable. 

The reason it will continue to be viable into the future is that apartment owners, while they may be sophisticated, are still human, and life is unpredictable.

However, proper budgeting and cash flow management will allow you to arrange the repairs yourself, and save you the cost of administration and profit for the company providing you the warranty.Insurance should really only be used to reduce risks that are unpredictable and financially crippling.

It will produce over time, but is unpredictable in nature."

The message is "take it or leave it" Since the bank has no legal right to market the property and find another buyer they will be left with an unpredictable homeowner who might take the "produce the note", BK, or property destruction avenues to increase the lenders loss and risk in the situation.