So this reason I rented the unit.

This is a fine example of where to research out of state investments as the housing prices to purchase are still reasonable and low (not like California where I am and entry level house SFR is a million dollars). 

I dont see any reason why the market would go up with the number of new buildings they are putting into the city as well as factors mentioned above.

It's eating away every bit of cash flow from the property and then some.Both units currently have baseboard heating - which I've heard can be on the more expensive side of heating options - but I'm not sure if this amount is realistic for the area, or if there is a better heating option that I should look into for a reasonable cost.

You could structure the deal with seller financing to bridge the gap.Possible offer structure:-Purchase Price: $170K - closer to actual value-Down Payment: Low or zero down to conserve cash-Interest Rate: 3%-5% - or better yet, 0% if the seller will agree-Monthly Payments: Interest-only or deferred until the sale-Balloon Payment: Full payoff in two years when you sellIf he wants $200K, you can still make an offer of:-$170K purchase price + $30K as a second lien due at closing-Seller carries $170K at a low interest rateHe would feel closer to his number, but you still keep within reasonable investment limits.2.

The reason I say that is because, the IRS requires distributions (RMDs) in order to have the taxes get paid on that money eventuallyl. 

If you present the listing well, put it on multiple platforms and are asking a reasonable rent you will get plenty of interest and applications quickly. 

The reason is the rent-to-price ratio is good so you can cash flow, and most of the West side doesn’t have a Point of sale inspection which is really annoying.

Quote from @Paige Gardner: Does anyone have Any HML recommendations I'm a beginner and want to get started right away but want to weigh my options  Hi Paige, Is there a reason why you need to start with a HML first?

@Drew Poniewaz  I just mentioned a range of reasons why zillow and craigslist delete seller financing ads.