Investors will be amazed looking back 5 yrs from now at how all those nice houses have now become surplus with fewer kids to buy them.

If you think the value of the property will increase keep it and use surplus rental income to reduce principal and sell it for more later.If you think the value is unlikely to increase in the next say 3 to 5 years get out with a small profit and do better on the next one

I agree they look great and I have not priced them out extensively, but unless you've got a high end rental, it's really hard to beat the big box stores or surplus stores on price.  

Now there are less 2-4 units so supply is low and those prices are going up, but we have a surplus of SFH and prices are not increasing. 

Among those w/ bachelor's degrees, the median guy in Silicon Valley makes 61% more than the median woman.  61% would certainly make the difference between getting by and having a surplus for most people I know.)  

I just got a quote from Western Security Surplus for vacant property insurance.

They are often referred to as "surplus lands" Due diligence is an absolute must as there is never a guarantee of any kind to the condition of the property.The only kinds of liens that may still exist on these is usually a lien from another governmental agency such as CITY, COUNTY, STATE, FEDERAL.I am buying a duplex valued at 45K in its current condition for only 1K.

She also worries that rent will go down with the market and we won't have any surplus on our expenses.  

Mutual companies are owned by the policy owners, and any surplus goes back to the policy owners via dividends. 

If there is a surplus we give the tenant the choice of: a) leaving the surplus in the fund {always our recommendation this time of year with winter heating bills approaching}; b) apply the surplus towards their next months rent; or c) refund the surplus to the tenant {this option is only available at the end of the lease term}.