If the property’s cap rate is above the moderate range, then the property’s characteristics are not reflective of the market.

@Kevin Giraldo, Changing a property from 2 family to 3 family can be possible depending on your particular building characteristics.

What identifying characteristics should I be looking for?

These are people who share motivational characteristics of people ready to sell, but haven't yet done all the work they think they need to list property.

I found numerous items that weren't conducive to investing, but the biggest one was putting my kid in the middle was not good.1. damages that no one took responsibility for2. unpaid rent by a tenant made difficult situation for my kids' relationship.3. the problem with 9 months rental(I tried the year long, but not easy depending on the competition)4. new requirements by the school (BYU) It made it difficult to take a hard line with the normal characteristics of mgmt when your kid is in the middle.

I would also look into Charlotte, Raleigh/Durham, and possibly Denver as those markets share many characteristics with the ones you have selectedI would start by working with a lender to see the current loans available to you.

What characteristics do you see in your guests? 

Sure it might have some appreciation characteristics but what if that doesn't pan out for you? 

Your answers will also help you choose the right type of real estate, since each asset class has intrinsic characteristics that fit one investment strategy better than another.  

I believe some parts of the University District, The Block Club pays for private security patrols, thats mostly along the 7 Mile section I'm familiar with that.This property though in the University District meets the characteristics  of the census tracks to the south and west than its own neighborhood, or the more exclusive 7 Mile neighborhoods.Subject Census Track - $38,333 MHHI, 13.4% UE, $447 Median Rent, 31.8 Median Age, 19.9% below povertyUD Census Tract 2 (east of subject, runs along DGC) - $57,419 MHHI, 13.4% UE, $921 Median Rent, 41.9 Median Age, 8.95% below povertyUD Census Tract 3 (North of subject)  - $94,153 MHHI, 13.4% UE, $393 Median Rent, 48.6 Median Age, 3.94% below povertyUD Census Track 4  (North of Curtis) - $67,181 MHHI, 13.4% UE, $940 Median Rent, 47.1 Median Age, .81% below povertyUD Census Track 5 (North of Margareta) - $92,663 MHHI, 13.4% UE, 38.5 Median Age, .45% below the poverty line