It sounds like a single family house where you will be living in the house(personal use).Therefore, you may not be getting the tax benefits you think you are.Consult an accountant.I am not sure why your sister would agree to this as well, she is losing $170,000 in this transaction and she faces the possibility of you increasing her rent.You also have to charge market rent or close to market rent or it is all deemed personal use.

The key for me wasn't to invest in the 'best place' but to know a market so well that a deal jumps off the page when it appears.

If you do not do your market research correctly, it doesn't matter how great your list is because you will pull a list in a bad market.

Quote from @Shayan Sameer: Quote from @Samuel Diouf: Columbus, Ohio is a great market to consider if you're looking for appreciation markets that still have cashflowing deals under $200k.

@Rajesh Kasturi My favorite MTR market for cash flow AND appreciation is Portland, OR. 

Since you have capital,  focus on the market fundamentals and quality of the real estate.

It works...but any marketing works, it just depends. 

Quote from @Chantel Holsather: I am always an advocate if you can fix up a property to make it more marketable, that is really the way to go.

Rich Ng That's good to know, I know people who have had issues in Salem with big differences between market and section 8.

Older homes that aren’t elevated could suffer major damage when the next storm hits.Many expect market saturation in the coming months, as flippers are snapping up flood-damaged properties.