Hi BP,
I am a newbie investor in San Francisco area, working with my father on a new project. This morning we got a call from our contractor letting us know the home was broken into and all of the tools were stolen.
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The houses are identical expect for the fact that ours is a lot nicer and completely rehabbed.Here are the numbers:Purchase price: $160,000Mortgage: $1030 (taxes and insurance included)Proposed rent: $1,500Property management fees (10%): $150Cash Flow: $320 (max) - The house was completely rehabbed when we bought it so there should not be any major expenses, but I would still plan on setting aside at least $150 for small expenses/vacancies.My thought is this: Even if I broke even or made a hundred bucks or so a month, its better than taking a $10,000 hit, right?

The vandalism risk is medium--which wouldn't necessarily be a turn-off--but the BPO says that in early January, there was an increase in criminal behavior, including 2 shoots, assaults, and thefts.  

First applicant lied on the application...and was convicted as recently as last October for burglary and theft (with previous warrants listed).  

How is the area for thefts?

That's the very definition of redlining.Next I TRULY question the amount of auto-theft or vandalism Detroit is known for because of I have lived in Detroit 7 years with my car parked on the street(no driveways) and not a single time has my car been vandalized or attempted to be stolen.  

An identical floor plan & SF, 2 BR condo can vary $50k where I live depending on the upgrades (original or upgraded kitchen, baths, floors?)

I look for violent crimes and crimes of theft, then look for past lawsuits on the credit side.  

Your initial cash outlay will be identical since you're putting 25% down - hence your cash on cash return will look much better with the 30 year mortgage.If your goal is to maximize immediate cash flow there are several local banks that will offer a 24 month IO period AND 25 year am (fixed 5 yrs).If you're looking for a stable long term product - a conventional mortgage may be the best play.

You think that your empty house, full of material and appliances and tools is not an immediate Target for theft?