As I look at this deal, seems like a solid investment, but then again, the one factor I do not have at the moment is vacancy rate and repairs that are needed.

Not every B class city is the same in Indiana, however.In cities without large factories or colleges, your units will be purchased for much less, but sit empty much longer.

Another factor is that the price per sqft actually goes up when you build smaller, as you still have the big-ticket items that cost more.

There is one core factor I am trying to figure out as I found a dispute in view points in these books.

Rust Belt: Parts of the northeastern and midwestern US that are characterized by declining industry, aging factories, and a falling population.

Didn't yet know about taxes, insurance, vacancies, repairs, stupid factor, etc [yes, stupid factor is an expense]) About once a year the seller/original borrower asked me when I was going to pay back the loan.

That factor is the elephant in the room, and it is called DEBT.

However, the cost and hassle factor is high. 

Make sure their criminal history checks out.Another key factor is employment history.

Not sure if the appraisal takes into account of the zoning factor, I suspect, you property might worth a little more than that just because of the zoning.