All & all which market you choose isn't something to loose sleep over.

@Mark C.You may not do either of the things you propose.You may not transact with your IRA or make contributions to a Roth IRA in excess of the allowable $5500 per year ($6500 if you are age 50 or older).If you have existing IRA funds, those could be setup so as to be able to invest in real estate.

@Carolyn Morales yes, The property had been vacant for many years and the city had a monthly charge for a closed account.We found it right after the sale and luckily were  reimbursed from the county from excess money after the taxes were paid.

Be sure to talk to them about 3% down conventional loans, because FHA loans are notoriously difficult, and sellers will prefer a conventional over an FHA, because the FHA appraisal requires the seller to fix little things like peeling paint, broken window panes, loose handrails, etc. while conventionals typically do not.Some borrowers are approved for a higher loan amount through FHA than conventional, but I believe the MIP is generally higher.Also, this is something your agent should be helping you with.

@Brayden StevensBrayden: Don't let your economics professor encourage you to attempt timing the market. 99% of the time you'll loose.

You’d be giving yourself some time to build equity (from both market and forced appreciation) and allowing for some (likely) increases in rental rates before turning it loose as a rental.In turn, you are giving yourself a much easier path to profit; whether it be through a sale or monthly cash flow.

It's possible for us to loose money on replacing a sheet.

Is there any room for it to be in bad enough shape that it could tank those estimates due to excessive rehab/repair costs?

I think that's a big reason why first time flippers often loose money on their first flips.

I know you said you're willing to sit on it but you also have to look at how much you'll loose out in investments if you sit on it another 10 years.