And will you have ongoing maintenance issues beyond your CapEx based on the building's age.I personally would be suspect of this deal.

They used lasers to find the low spots and used "push piers" to lift those areas. 

I was able to figure out that they had come upon some hard times and were significantly low on cash.

Your income isn't high enough for it to make sense as a rental and the closer you get to your residence limit the greater pressure you will have to sell it before losing your exclusion in whole or part. 500k right now can make $15k per year income with zero maintenance or tenant risks. 

Add those people in by using County or Schoolarea population.Example:Town1:#ofunits/headcount= 300 units in the area/ population 3,000= 10 unitsper 100 people.Town2:5004,000= 12.5 per 100Town3:andso on.Doevery stand alone town in a 60 mile radius, or until your satisfied.You will get a High, Low and a average.

We invest in Greene County, Ohio and currently have 24 low income units. 

Based on my calculations, even with a low down payment, I can achieve positive cash flow (with aggressive enough house hacking).

To set the stage, I'm owner of a short-term rental property in the Poconos in PA and we use a property management company for bookings, maintenance/cleaning, guest management, etc.This past weekend we had a guest booking but when the guests arrived Friday evening the house had no running water, though it had been running fine earlier in the day when the Property manager (PM) was at the house to give a final check and leave the welcome packet.

Beyond the Monthly Management, Placement & Maintenance fees, all other fees in our contract are IF EVENT -> THEN fees.

I am still not sure how he gets positive cash flow while repaying 5 year loan back, unless he charges buyer in excess of 17% for 30 yr fixed loan and pays very low interest to PML lender.