Also, be sure to factor in maintenance and potential CapEx, especially for older properties.

I was reading up about it, and saw that the cons of oil heating include needing to top up the oil supply, lower efficiency (than gas and electric), and potential leaking of tanks leading to environmental issues.Is anyone familiar with oil heated homes?

Underpriced, underperforming, value add, 20 units, cash flow potential, low risk How did you find this deal and how did you negotiate it?

Inherently the steps are the same as if you were purchasing with financing save potentially less closing costs and ability to close sooner (if needed).The terms of your offer (ie -contingencies, closing cost splits etc) will determine what is different. 

Gifting equity in a house may be more trouble than it is worth if you are not near the life-time exclusion1) Potentially having to get the property appraised everytime an equity is gifted2) Having a title company update the title every time3) Exemption of the gift tax return is normally for cash gifts below the annual gift tax exclusion, you may still need to file if you gift non-cash4) If there is partial ownership over several years, having to properly pro-rate certain items such as real estate taxes, mortgage interest and rental income if the property is a rentalBest of luck 

My out-of-state clients love it here because you can still find cash flowing deals hitting the 1% rule with lots of appreciation potential.

Pick one with value add potential.  

My concern with declining values, increased inventory and a weaker economy would lower rental income and could potentially put me into a negative cash flow situation.

@Jadan WilliamsIf I were in your shoes, I’d start by clearly defining my investment goals and identifying target markets with strong job growth, population increases, and development potential.

Hi Saul,For better cash flow potential, you might consider Memphis.