The rust belt is defined as parts US (northeastern) that are characterized by declining industry, aging factories, and a falling population. 

Perfect location, in the heart of Falls Church City, 10 minutes away from DC and other major locations in Northern Virginia.

I am seriously considering taking $150k of it and buying 3 new builds $50k down as rentals in somewhere like a Houston TX subburb, Wichita Falls TX, Oklahoma City OK, or Kansas City, MO.

Every GP, real estate investor, makes mistakes, doesn't time the market perfectly etc, looking for the perfect is the enemy of the good. good REITs right now, take a look at ADC - agree realty, does multi-tenant triple net large shopping centers and has better growth outlook than Realty income-O-, 6% vrs 4%, which is also great company, both stand to benefit from low supply of retail space, last 5-10 yrs construction-wise, and thus better rents going forward, and interest rates should fall near term, lowering Cap rates and increasing underlying asset values and sales proceeds (only hold REITS in a tax-sheltered account, 401k or IRA, due to high taxation of the dividends-ordinary income) Good Luck

All  real estate activities fall somewhere on the spectrum, with say owning a real estate brokerage at the extreme ACTIVE BUSINESS line and investing in a REIT index fund on the PASSIVE INVESTMENT line.  

@Gene Guarino it's been a tough few weeks to the point of discouragement and would hate for the contract to fall through.

Because you live with the person versus renting to them in their own individual Unit you may fall under more lenient guidelines in replacing the tenant.

@Steve C.If a deal is 70% Debt financed, then 70% of the gross income is taxable as UDFI.You then apply a $1000 exemption and 70% of allowable deductions like depreciation, interest, etc.The resulting net taxable income is then subject to trust tax rates, which scale in brackets.A typical $100K investment in a syndication may produce a net taxable amount of about $1,000 on annual distributions of rental income, which will fall in the 10% bracket. 

But, should be your fall back option, not your first option. 

I have a house close to Wichita Falls Texas and I live about 8 hours away from the property.