However, it appears that you have fairly healthy returns on the investment, so the carry costs are minimal compared to the upside potential.

Rochester is an excellent market to invest and grow a healthy cash flow.

I'd then have a healthy down payment for another home; Move into that one and rent out full property on 1st location.

But if the property has a healthy cashflow and a good cash on cash return then you should be good on your exit as long as you didnt pay way over market for it.

He may be healthy now, but you never know what the future holds.You need to balance the stepped up equity with his potential need for medical care.Also, if he is in a vehicle accident he could loose the property in a lawsuit settlement. 

Phoenix isn't cash flowing very well right now, but we have VERY healthy appreciation.

I think it would be a good and healthy learning experience for me until I am comfortable hiring a company to do that for me.Although I do not believe those numbers are the best or greatest I can get, I am comfortable with that for now.

People are able to live healthy lives inside homes that have lead paint, as long as the lead is not in the air to be breathed, lead is not ingested and paint is properly sealed without hazardous risk.

From a sellers point of view a healthy down, 20% or so is desirable.

There are newer banks opening now or that have in the last few years that have healthy balance sheets with little to no toxic assets.I agree that many of the local and regional banks cannot take the write downs on commercial or they will be insolvent.They might have only funded a few commercial loans that went bad but they were big ones compared to the residential notes they are holding.I disagree that regular sellers won't sell.Core markets have already heated up and have driven cap rates down for A product and A location to just a little above the boom times.The problem is the local to regional banks hold the majority of the commercial distress in tertiary and secondary markets where recovery will be slow and painful over many years.Recovery starts with A assets in major urban city cores and grows outward over time.There are many buyers looking to purchase and to get a standard commercial loan need a performing property with high occupancy.Otherwise they need all cash or a hard money or private partner going in.Restructuring of notes on the pre-foreclosure side with a capital injection is also gaining traction.There are groups that have to deploy capital in a certain time frame who have optimal areas.Once they see they cannot hit the numbers they want in that area they have to adjust the expectations of the investors,return the money,or branch outward to areas that offer greater returns more inline with the investors fund expectations.Regular sellers are selling.Cash buyers want a real low basis.So I am seeing sellers do a wrap or hold a second or other creative means to get a higher price with some down for a buyer.For the buyer it lets them leverage the limited cash they have into a larger deal for upside in the future.Example for a 40 unit with a wrap and all cash investor would demand 13 to 14 going in.