My thought, or hope, is that if the area is composed of good construction and a good location (by location I mean proximity to down town or some other place people need to be at-not locations as in "this is a nice neighborhood")then property prices will at least keep pace with inflation and probably do better if the area is currently depressed (undervalued).I am not going to wait for the profits from my first house to buy my next house.

If you're in for the long haul and are willing to engage the community to decrease disorder, then I would point you to best practices for community building.

Does using higher expense assumptions depress the yield assumption to the point where no one will buy?

The area is fairly depressed.

I was broke, homeless and out a job and going through some heavy depression when she approached me to join her on the venture.

Yeah the situation is one corner of the back of the property has a depression on the cement where it meets the house and as a result this corner falls 4 inches below the base flood elevation, requiring Flood insurance to the tune of about 2,500 a year.

With only 1 rental you won't get management for 10%, it'll likely be 12 - 14% depending on turnover (they'll charge you 1/2 to 1 months rent to fill a vacancy).Florida is a very depressed housing market.

I'm very disillusioned and depressed.

How about the depression of rents?

Use that money to reduce your basis in duplex or to put into more property.Requires patience, but if you can pick up lots on the cheap in this depressed land market, with rentals that generate cash flow, it will be a great long term play.Leonard