We decided to market it as a 4 bed/1 bath with an office.Listing Price - $199,900Property Taxes - $2,230.13AssumptionsPurchase Price $230,000In this case I had seen similar properties selling for $225K - $250K so I felt the property was listed low to drive up interest.

It looks good) I stumbled across someone locally who does it, but I'm sure you could find someone there if you or other out-of-town investors like the idea of paying a bit more for that level of security and obtain a remote monitoring source of the exterior of the properties.

For the "why" regarding condos...high HOA fees (like 1000/mo...something like 400-500 is now "very low"), high insurance costs, overbuilding (everyday it seems like new building is going up) and high property taxes. 

Rental property prices are low in this area, leads me to believe there are problems with the rent collected vs expenses.

:We use the cheapest ones that they provide at Lowe's, our handyman installs.

The owner occupant rate is super low compared to many states but as a rental it goes up alot.  

Quote from @Carlyn Chism:I agree with Chris on a lender that might be a scam or make you may so much money interest because of the low credit score that you make $1.00 on the flip or no money.  

I tried to do a cash out or heloc on this house but it couldn't be done because of the price it was low. the house is located in Rockford il, planning to buy in Rockford as well since I live here.

That’s pretty low interest. 

You can do less than 20% down (as low as 3.5-5%) if you intend to occupy the home for at least a year.2) There will be an HOA (homeowners association) which restricts rentals, so be sure to read the CC&Rs (governing documents) to ensure that your rental strategy is allowed, even if you intend to live there at first, eventually you'll be transitioning it to an investment property, so this will be important.