To clarify...not that the area he invested in is garbage, but the investments he's proud of have objectively under performed, and when you're that far away sweat equity is off the table. 

After moving in I did some medium renovation to the 2nd floor, mostly myself, but hired professional too.

BP(youtube) has given me a great start, but now it's truly time to dive in. I

ThanksPhilipIt helps to know what state the property you're looking for a loan is in.  I

There was some mold I noticed when I visited and looked at their unit where the leak was coming in- I fully expected to get a bill for drywall repair, maybe a section of wet carpet, some painting, etc., but not complete mold remediation. 

What city is this in? I

There is one question I have to start this out:How can I tell if an area I want to invest in is declining, rising, or a poor decision.

Yes, (sadly) it is small potatoes and below the threshold.So now I guess it is a matter of which state to form in. I

$1200/mo.There is strong interest in the basement suite at $850 but I have stopped advertising it because I want to get upper level guy moved in, and settled for a few weeks, before getting basement moved in. I

You can't compare Ohio to California, it's two different demographics, locations and situations.NYC is seeing new high's for selling prices still... because there is little new land for more condos (supply) and people want to live in the city (demand) and have the means to pay for it (demographics)Demand and Supply.......... why do you think its cheaper to buy out in the middle of nowhere....then it is in a congested suberb right outside the city....Economics 101 In the end its a personal preference.. why anyone would pay $500k for a 2 bed house is the wrong question.. because its all relative to location,location,location Asking why anyone would pay 500K for a house in _________ (ie. detriot) would be a better question