high crime area neighborhood, but holds good income to low income  households and going through revitalization through 2020.   

House is about 600 sq ft.Numbers:Buy at 12kRent is 465/mo  (about 2 yrs to be paid off)Ins about 300ishtaxes are 686/yr1bedroom house with bath - is it usually for single people, or small households?  

Our household income is about 80k.

But must be verified by 60 day history, and must be a gift with no requirement to pay back.Reserve Requirements 3-4 Unit owner occupied properties must have 3 months PITIThree (3)- and Four (4)-Unit Property The maximum mortgage amount for the three (3) - and four (4)-unit properties is limited, so that the ratio of the monthly mortgage payment, divided by the monthly net rental income does not exceed 100%, regardless of the occupancy status.Livable Conditions The property must demonstrate the following characteristics: A continuing and sufficient supply of safe and potable water under adequate pressure and of appropriate quality for household uses.

Buyers Household income was such, that I felt the reward (extra cash flow) was acceptable.Things I learned--It took MUCH longer to find my first flip than I anticipated.

But must be verified by 60 day history, and must be a gift with no requirement to pay back.Reserve Requirements 3-4 Unit owner occupied properties must have 3 months PITIThree (3)- and Four (4)-Unit Property The maximum mortgage amount for the three (3) - and four (4)-unit properties is limited, so that the ratio of the monthly mortgage payment, divided by the monthly net rental income does not exceed 100%, regardless of the occupancy status.Livable Conditions The property must demonstrate the following characteristics: A continuing and sufficient supply of safe and potable water under adequate pressure and of appropriate quality for household uses.Sanitary facilities and a safe method of sewage disposal.

And with my sister not working and being a single mother it was a tough financial household.

. * Use of non-borrowing household member income is not calculated into DTI, it's simply a compensating factor to allow DTI to go up to 50%.

If you plan on buying a multi don't look at cap rate, look at vacancy,  if it's 100% chances are its too cheep and you could probably get away with raising the rent, if it's at 50% maybe the area is terrible or the units dont fit well with the people living in the area. its a bad investment to have one bedroom units if the area's average household is +4 people. 

You might want to go with a franchise mold remediation company, yes they are expensive, but they could identify better than your household contractor.