Your thesis is basically rent low and accept less desirable tenants so I don't think that is the best thesis to base an investment off.

My expenses on that deal was $745 per month and tenant buyer paid for all of the utilies, upkeep of the property etc...

Townhomes/condos are all pretty expensive in the area that I am looking (where I currently live) because there are good school around my area.

I highly recommend finding a market that is landlord friendly, cash flowing, doesn't have regular catastrophic events, property taxes are low, insurance rates are under control and you like the area.

For example, the pro forma projected that the property tax expense for Year 2 and Year 3 to actually be LOWER than what was paid by the seller the year before the sale.

The issue is our land value is high, so the structure value is low compared to the overall property cost. 

I don't think you are being honest with the math.The most expensive county in Maryland has an average rent of $2,300 for a 3-bed home.

Interest expense as a deductible, Depreciation expense as a deductible and Principal paydown as a piggy bank. 

Quote from @Natalie Pancoe: I am a pharmacist with a family and a very expensive horse hobby. 

Would I still be able to write off all of my expenses and interest if I change the ownership from my name to an LLC?