Here are some preliminary numbers I ran: 260K FHA no repairs and current rents on left, 300K 203K, reno and higher rents on right: % Down Payment 5.00% 5.00% Down Payment $13,000 $15,000 Remainder of closing costs $3,000.00 $3,000.00 Total Due at Signing $16,000 $18,000            Mortgage Rate 4.60% 4.60% Length of Mortgage in years 30 30 Monthly Mortgage payment $1,266.00 $1,461.00 Taxes $386.00 $445.00 Sewer and Water $50.00 $50.00 Trash $50.00 $50.00 Heat/Utilities $ - $ - PMI $ 180.00 $ 208.00 Cap Ex and Ops $200.00 $200.00 Insurance $65.00 $75.00 Mgmt Fee $165.00 $165.00 Vacancy $132.00 $132.00 Total Expenses $2,494.00 $2,786.00     Unit 1 $500.00 $700.00 Unit 2 $900.00 $1,100.00     Total Revenue $1,400.00 $1,800.00     Cashflow/month ($1,094.00) ($986.00) Cashflow/year ($13,128.00) ($11,832.00) Cash on Cash Return -8.42% -6.57% I have not talked with the seller in detail yet, as I want to see if this is worth a deeper dive first. 

Business mind-set to ensure you can handle problems without getting emotionally involved.Those are just a few starters.

He started off in real estate doing apartment deals part time at home while he had a W-2 job he hated, and not even seeing some of his deals before buying and reselling them as a wholesale (about 75 % of them but because of their profit amount he only had to do that about once a month).Do not let emotion make any of your decisions. 

Let the numbers and your analysis take the emotion out of your decision making process. 

I appreciate the feedback, seems 100% accurate after diving in a little deeper.

You can get a deeper discount on a house by sending direct mail or cold calls.

I'm obviously going to have my own emotions attached to the decision, so I'd like to ask what others would do if you're in a similar situation.

After delving deeper into the tenants information provided and credit, things changed.

Good owners, you won't have any damage, but bad owners.. well if you ignore a dogs emotional or physical needs, your property will suffer, so just make sure you're aware of it.   

I'm new to Deeper Pockets and I'm loving the Podcast.