Have you reviewed the rent roll, expense history, and pro formas from the previous owner?

Thanks @Oliver Simmons for this advice.Yes, am aware the City is rolling up this out for landlords. 

I had one tenant roll out and another one try to roll in immediately and there were a ton of hidden problems that were not known to me. 

Will roll up his sleeves and can run circles around most GCs and I put all my reputation on that. 

(Purchase price: $35,000 / Rent Roll: $1,550 per month)   After Taxes/Insurance/Expenses the SD IRA should see a return of about $900/mth.   

I think it would take pretty strong ecenomic shock felt globally to see it roll out otherwise.I also wouldnt be surprised if there was some relief provided in the mortgage stress rules.

those type of homes are all throughout houston... id believe the agent i went to see a house once that was listed 100k, it got done 105k ... about the same 1600 sqft 3 bed 2 bath ... the house had a tarp on the roof, it was raining and leaking in, foundation problems all over... whoever bought that would need to put in 50k at least if not more.but if it rents for say 1350-1400 a month, then there will be an investor willing to do that deal and roll with the riskcap rates in houston are pretty low and in most major metros are much lower while there is still a ton of money everywhere looking to find yield

I'm thinking that if I could trade up into another property that yields at least $800 of monthly cash flow, then that's probably worth it assuming I'll be rolling it into a larger property with either more scale or opportunity for appreciation.

If it's $50, then pick the best tenant out of the 20 and roll with it.

I had read somewhere that you can roll lawyer costs (title, etc) into basis cost as well as origination fee and deduct for life of the loan.