The property has 4 identical units, 2 up and 2 ground level. 

(Unless identical ones sell for $160k+). 

Far too often, we hear horror stories of mismanaged properties and down right theft.  

Cap rate is also determined by a market: identical properties in San Francisco and Rochester will sell for wildly different prices, and depending on who you ask, the "better" Cap rate might be 3% or 12%. 

I'm worried about theft of appliances and materials while vacant. 3) I imagine that the inspection will turn up some problems.

While I’m working on the improvements, how can I protect our investment from theft of appliances or materials?

I would think but I will check that your identity is somewhat protected by the board. to mitigate that problem. 2.

When all is said and done if you get 12% or 13% ROI, after all expenses including a maintenance allowance, insurance, taxes, property management fees, vacancy alliwance, professional services, etc; then you are doing better than most.Bad neighborhoods will have higher initial ROI, but will be offset by higher vacancy allowance, greater legal expense, more theft, higher insurance, etc.Then factor in your cost of money.

@Dan Mason I think Leon is talking about the Pittsburgh neighborhood in Atlanta, not Pittsburgh, Pennsylvania.3) In addition to the inherent risks of real estate investing, in lower-income areas of Atlanta you will face increased risk of theft and vandalism (e.g., AC units stolen, pipes and wiring ripped out, window broken, door kicked in), significantly more challenging tenants, and neighbors whose actions reduce your property value (e.g., building code violations, drug activity, squatters, loud music, loitering, littering).

I have a duplex with identical 4/2 units.