Both still have value, but you have to know you are looking at third or more serving options in these places.

As for legal action, we're exploring options for misrepresentation and considering a report to the local board if warranted.

You could hire property management and probably still do well although I am not sure of the options in that city.- If I use a 1031 Exchange, does the next property also have to be a duplex?

@Travis Boyd Outside of instances where FHA or other extremely advantageous financing options exist I am a proponent of the LLC for investment real estate although the liability piece is overstated.

The other option is a water supply line, but that would typically resulting a steady leak and the damage would occur faster.Really think about what is above that space that could cause the issue.

Although we’re not a local bank or credit union, we are independent mortgage brokers with experience in financing options that consider rental income rather than personal income. 

You can definitely find multifamily options under $150k in Cleveland, but when it comes to Columbus and Cincinnati, that price point is pretty much a no-go.

Transitioning to a Second Property with Low Money DownIf a second FHA loan is not an option, here are alternative strategies to minimize your out-of-pocket expenses:Conventional Loan with 5% Down: Once you’ve added equity to your current property, consider refinancing into a conventional loan to free up your FHA eligibility.

Given the high interest and the purchase price isn't low, the cash flow won't be as nice as my other rentals or other options in a different neighborhood. 

I wrote this not too long ago about why I think turnkeys are a great option for newer investors-https://www.biggerpockets.com/renewsblog/turnkeys-...Hopefully that adds some info in for your to consider and anyone else reading this.