Purchase price: $120,000 Cash invested: $150,000 Dilapidated house.

I know a friend who is an attorney, although they don’t specialize in housing law.

First of all, let me pay my respects to the hardworking people in real estate and the treacherous waters they navigate—fronting hours of effort with only the chance of commissions and an abundance of non-forthright people out there.

I also see your point about avoiding bargain basement properties, especially insofar as tax shielding is easier with an asset of a reasonable size.Your point about barriers to entry is also interesting, since I suppose those barriers can be geography (natural boundaries of mountains/water), but you're probably referring to that which impedes future construction?

Good question, they seem to be all over the place depending on the area and I am not an insurance specialist, I think typically 1.5-2x normal rates but I could be off by a bit i have been honing in on White Hawk if you know that development and its in the pines but it does have water system with hydrants but volunteer fire department ..

You could sell one house and buy two with that money. 

Typical inner city early 1900’s Akron house.

I also own a water restoration and general maintenance business in the area and the amount of STR owners that we have spoken with is insane.  

As for the first, yes we'd be able to do that (for example, replacing a water heater which is the mechanical that's closest to the end of its useful life).

Unless this is strictly a student housing for IU play you would want to be extremely hands on to make this work in my opinion.