When I started looking into it, drilled down and spoke with people who have been there and done that, it became clear that while it's possible to make some money doing it, there are definitely some issues that will likely arise: tenants in those areas will cause more wear and tear, are much more likely to default, and you'll spend more time either managing the property or managing the manager.Yes, you can buy houses sub-$50k that rent for $800-1,200/month and at a first glance, that sounds awesome.

So now can you tear the deal apart so I can fill in an holes i'm not accounting for?

Put a lot of blood, sweat and tears into these properties fixing them up and renting them out.

On the negative side, there is a cemetery across the street from the house and an abandoned railroad track at the rear of one portion of the lot.Any ideas how much to tear down a home?

If you get the right tenants you won't be tearing them up in a few years. 

$6k sounds high to me for a roof of that size, regardless if they're tearing off 2 layers, etc. 

If the lease term has expired and the rent rate in that area has dropped, or your property has more wear and tear which you do not care to fix (and tenant does not mind), then by all means, modify the lease agreement with a reduced rent.

Well, someone recently told me if I thought about tearing down and rebuilding a new home; I am pretty sure that would cost alot more than $40K right?

Tenants are extremely hard on appliances, it is not uncommon.Landlord Responsibilities: Landlord will at all times during the tenancy keep the premises fit for human habitation, and shall in particular:a.Cultivate, care for and mow surrounding grass, lawn, flowers, and shrubberyb.Maintain the premises to substantially comply with any applicable code, statue, ordinance, or regulation governing the premisec.Maintain the roof, floors, walls, foundations, and all other structural components in reasonable good repair as to be usable and capable of resisting normal loadsd.Keep any shared or common areas reasonable clean, sanitary, and safe from defects increasing the hazards of fire or accidente.Provide a reasonable program for the control of infestation by insects, rodents, and other pests at move in f.Except where the condition is attributable to normal wear and tear, make repairs and arrangements necessary to put and keep the premises in as good condition as at move ing.Provide reasonably adequate locks and provide keys to the tenanth.Maintain all electrical, plumbing (main lines), heating, and other facilities and appliances supplied by Landlord in reasonably good working orderi.Maintain the unit in reasonably weather tight conditionj.Provide facilities adequate to supply heat and water and hot water as reasonably required by the tenant

I have a house I'm looking to wholesale but I have a concern about the roof.It was replaced a couple of months ago and the seller thought that the roofers were pulling permits but I can't find any evidence of permits being pulled on my city website.The roof was a tear off and a secondary moisture barrier was installed underneath.