Your post lacks important information such as your location, typical local cap rates, , expected cap ex based on condition and what your anticipated value gain may be.

Make sure you account for all anticipated repairs/expenses when checking your cash flow to see how much you'll be able to pull out.

Supposedly the next items for him were to be a new water heater in about a year or two, and some carpet...ill verify tomorrow.So help me understand “spread,” and what I should anticipate?

Did the ultimate resale price end up being much lower than anticipated?

I've never seen a fixed disposition date, and would never write a deal that way.One way to hedge is to ensure the debt's maturity date far exceeds the anticipated hold period.  

Not that I have a crystal ball, but I see a  cycle of more CapEx/maintenance than anticipated for longer than you thought that eats into your cash flow and keeps you from updating the units, which keeps you from maximizing  rents. 

The listing said that they were selling the property "as-is" so I don't anticipate they'll pay for much.

I anticipate this won't be the last issue from them and will be ready next month as well.  

The house looks promising from an investment perspective - or at least as promising as it can be in this seller's market where most houses sell for prices where the rent is barely large enough to cover all foreseen expenses, let alone leave you with a steady cash-flow, profit.This one looks like it will allow us to get some decent cash-flow after all expenses, fixed and anticipated (including capital expenditures, vacancy etc) are accounted for. 

Thanks everyone in advance for your highly anticipated wise words!