This must be California and that being said I would tell you "No" (Don't do it) look at other states for that kind of purchase price.

They are a much forgotten group and that's kind of a disgrace.I also have great deals cross my desk all the time in PA and S.Jersey, be happy to share if you ever wanted to take a look.

However, you may be able to avoid it if you're able to do a like-kind exchange (aka 1031 exchange) and reinvest the proceeds in a similar investment property.

(full disclosure-I knew the guy, or know him, he's not dead just gone from the auctions and haven't talked to him in a few years, but he was always nice to me and I don't have a clue as to the validity of the federal charges against him, but he always treated me decently and I've got nothing bad to say about him and I know other landlords who've been demonized and slurred as slumlords when I think they simply bit off more than they can chew, while other real slumlords seem to operate for years, as long as they don't get too big) He used to kind of dominate those auctions and maybe that was a good thing, as I'm sure there's a whole cast of characters who've filed that void.Thing is, ANY property under $100k, maybe even under $150k or $200k will certainly have multiple bidders, there are a LOT of people like me when I'm looking, who have the subscription to the sheriff's sales info reports from the Daily Reporter ($600/year and you get the results emailed to you in an Excel spreadsheet on Tues, next weeks auctions emailed on Thurs) and another good indicator is I'm on an email list for one of the firms (actually out of Chicago) which handles a tiny, tiny fraction of the cases and I've looked at the "cc list" or whatever you'd call it if ALL the addresses that email is sent to and there are HUNDREDS of them on there and this is for I think Johnson Blumberg, who many weeks don't even have any cases in MKE or Waukesha Cty.

what kind of clientele are you targeting for extended stays?

Don't know if the above number guestimates are accurate or not LOLBut I will quote from MARK TWAIN (Samuel Clemens) : There are three kind of lies; direct lies, indirect lies, and statistics! 

(The properties do qualify for like kind exchange.)Thanks for any help/input!

feedback from successful small Multi-Family investors in the Charlotte MSA and Southeast to gain your thoughts, experience, and outlook on the current and future market for this kind of product.

We are also told that it will not appreciate but that is not exactly true based on realtors, but they are kind of biased.Thoughts?

Account Closed I would strongly recommend instituting some kind of pre-screening process when people inquire about a rental.