Spending the extra $200 now could save you thousands in repairs down the road.

One thing that wasn't mentioned is that the road leading to many of the homes often floods making a good portion of the rental homes inaccessible during storms & also resulting in early evacuation due to storm threats. 

Second, if this relative has any other close family, prepare to be accused of "taking advantage of sweet old Aunt Sally," if not now, then a few years down the road. 

My brother looked at about 50 houses and they all had some form of lack of permitting, back taxes, no legal road access, etc.2.  

I have to be in this area with the repairs I think the house needs to bring it up to my standards for investment/long term maintenance for it's future life as a rental or sale down the road when the neighborhood is a little more revived. 

(Hmmm. maybe more so because the RV is traveling down the road. :) ) Yet it has more than paid for itself and my family gets to use it.

Fear of a market crash, fear of negative cash flow, fear of humiliation by one's family "we told you it was a bad idea"The reality is, you'll hit some bumps in the road, but it is very hard to really screw up BIG with REI as long as you buy quality assets and don't completely fail at managing the property i.e. too lazy to fill vacancies..Ironically it is that fear that will make you buy a cheap property instead of a good one, because you "feel" that a lower price will curb your risk.And fear will make you accept a marginally qualified tenant because you are worried there won't be a better one next week.

The major downside is the rugged road through the property.Given these two options, I'm just curious what you guys and gals with the experience think of it and what direction you would go if it were you in my shoes.

Committing a serious criminal act.14. 

What you are giving up is basically an option for the buyer to get a better deal sometime down the road.