Especially if your a cash buyer.. as an alternative if you just want to put 50k to work.. buy a very nice performing note on a 75k asset.. the return will be the same and usually a lot better since your income is consistent. your equity position is better your only risking 50k on a 75k property not putting out 100% which is full value .. no cushion .. so that's one thing.. but really its just buying a quality asset in a quality area.. and the cheapest homes in a given MSA which basically 30 to 50k in Indy that are rent ready that's what those are.. your as stated going to find the bottom of the barrel tenants.. bottom of the barrel tenants give you inconsistent returns and can trash your houses and they move a lot turn over kills landlords just kills them .. 

Add a cushion (maybe 10%) in case you haven't done so to cover unforeseen costs and overages.2.

That gives you a little more cushion/confidence knowing the history.  

Nevermind that revenues went down as the millionaires left the state but it had the effect of cushioning the Salem market and setting up the city for growth after the recession.  

It also includes the cushion that i have for lowering my sales price to account for the fact that some buyers may not qualify for a $150k purchase, but may for lets say a $135k one.

Now I made mistake in my life, I get it, but I feel that REI can help me fix these mistakes, help me make a good cushion for my parents as they are getting older, and of course help me create a living situation for my future family as well where my past mistakes of student loans won't ruin my kids future or my significant others future. 

I would look at the cost/unit and still would likely want more than $100/mo as there isn't much cushion.  

If you have $100k you can even buy a 4 unit for $2,000,000 with putting down $70,000 as the minimum of %3.5, the remains $30k you can use for closing costs and some minimal repairs or just as a nice cushion.

It helps to have a financial cushion, but it just hurts having to eat into so much of it when it wasn't expected.. but then again, we're told to expect the unexpected which now makes the unexpected well... expected.Here's a couple photos for some amusement 

. ;-)My realistic expectation for my first flip is 4 months from start to finish but I will use 6 months in my calculations (holding cost, etc) to allow for some extra cushion.