I much prefer a lower cap rate in California knowing there is a high likelihood of long term rent growth and capital appreciation vs. concerning myself with a higher initial cap rate in the midwest but on an asset where rent grow is small and an asset that is deteriorating. 

I see a lot of Single family advertise as 10% cap rate but once you take into account insurance/ Capex for future repair etc i think it is closer to 6%/7%.Whereas for a condo I don't see the  expenses to add up and deteriorate the cap rate to 7%.

Keep a collage and send it to the seller and express your concern about the deteriorating condition of the house. title insurance has nothing to do with this. 

Shelf live over 10 years, and doesn't deteriorate like carpet over time (meaning it holds its rental appeal longer). 

Neighborhood starts to deteriorate.75th to 79th - Neighborhood further deteriorates.Night and Day difference between the quality and rents of a 2 Bed apartment near 67th versus a similar apt closer to 79th.

Meanwhile the assets deteriorate from stagnation.No legal advice given. 

Marginal gain over time unless you let the property deteriorate to nothing.

You'll also want to ensure you have a good property manager to look after the upkeep of the property if you are not there to notice anything deteriorating or which may need attention.You also want to look at whether a pass-through entity helps your bottom line and your taxes.

They are depreciating assets that often deteriorate quickly, depending on the tenants you get....meaning high maintenance and cap X costs.

I’m looking for suggestions on how to safeguard myself in case their situations deteriorate quickly and I’m out one or both tenants, and ultimately rent money.