Think of it from the PM's perspective: if you were them, would you deal with the significant headaches of a C or D area (non-paying tenants, trashed properties, crime, police calls, etc.) for a 10% cut of a single property (probably just a few hundred bucks a month) ...I wouldn't.To make matters worse, the property isn't appreciating (because it's in a low appreciation market, or even a depreciating market), and the tenant pool is primarily made up of people with bad credit, low/no income, and a history of property damage at the previous places they've rented.

There's pro's and cons.Pro's:Not reported on credit (doesn't damage DTI and can do unlimited loans)Low doc (no taxes, DTI, employment)Close in an entityCon's:Loans are higher rates, but not as high as some have said in this thread.

By renovating the unit with the damaged subfloor and adding basic improvement to it and each of the other units as they come open, I plan to add 25-35% additional value in the next year or two.

Also, I’d make the down payment large enough to cover damages if they don’t pay and trash the house.

Wood frames/windows in the shower area is ripe for water damage issues...

I know investors who bought an apartment building OOS and lost money, having to evict a tenant who then damages your property, steals the appliances and water heater then seeking legal action against the tenant and negligent property manager while 2000 miles away.   

Here are pictures of the foundation damage - not sure if this changes any of your thoughts...?

. - You can go it the more heavy handed way and you will likley be able to file for an emergency eviction becuase your property is being destroyed, to do this you should take photos of the damages during your walk-through. 

If you include lost rent, damages, etc., then yes, it is very expensive.

If you can find a way to dress up the listing to look more appealing this will help with your best odds.3.