I suppose:-they do not appreciate as fast? 

Supposedly he didnt renovate the others as the tenants did not want to move.

Supposedly decent returns and very hands off.

A lot can happen in 8 years.Also remember, the monthly payment on this supposed no lose investment condo is $2000 per month for a 15 year plus association fee. $250 is just a number I plugged in.

First off, the 1% rule is a general rule of thumb that's supposed to help you quickly determine if a rental property is a good deal.

I suppose the house burned down or something.

They also likely understand you supposedly cannot ask them WHAT health concern.You can, of course, ask for the name of the  medical provider they have seen that has diagnosed this "health concern".If you don't wish to go this route you can explain to the tenant you have addressed this issue with professionals but if they wish to break their lease you will place the unit on the market and once it is re-rented they no longer owe rent. 

In just about every state you have to start out by hanging your license with someone who is supposed to make sure you understand the business.

So it makes me wonder why ppl aren't jumping on these properties that are for sale if they are supposed to have cash flow. 

I owed a well secured second and borrower was suppose to make payments to the first outside of the plan.