Property that is in disrepair may not be suitable for all conventional lenders or they may not have a loan program which allows them to use that property as collateral.  

I just came across your post.I represent buyers and sellers primarily but not exclusivelyin the five NYC boroughs and surrounding areas,concentrating on off-market properties suitable forinvestors: multi-family, mixed use, commercial, development.When you are looking for your next investment, contactme with the type, location and price range you are looking for.Meier (Mack) Frankel

Stay with flipping till you get a more suitable building and location.

It's very thorough and I think many of the sample policies that they have in each area will be suitable for many property management companies. 

Seller is not aware of all of the property's defects, and advises buyer to obtain, and rely upon, professional inspections to determine the property's condition and suitability."

I'm just trying to see if condos can be an investment that will be suitable for them.

This strategy may work for you because a) the reduction of monthly debt service on your current home may allow you to rent out your current home for a decent cash flow b) the low down-payment requirement (3.5% last I looked) on FHA loans would allow you to tap only the cash you have on hand and purchase a new property.Pros: Most efficient use of available liquid capital (from the brief snapshot you have given me)Equity in current residence could later be tapped to help you remodel and build equity in second purchaseCurrent residence may cash flow well once rented (not enough data to verify)Cons: Require you to moveHave to pay refinance closing costsThere will be time that you are paying both mortgages while you are looking for a suitable renter, but if you plan this for PCS season for the large number of military installations in the area your risk here is greatly reduced.Please remember to take this with a grain of salt, I do not have all of the details of your situation and you should talk with your spouse and lenders to ensure that this works in your situation before executing this strategy.I hope all goes well for you,Allen Fletcher

In some cases im still calculating suitable cap rates but as @Jay Hinrichs put it, rental income is simply one component and not always the most important. 

Does anyone know these markets and whether or not the are suitable for a long term rental strategy?

@Laura TroianIf you can find a suitable tenant who would take a 6-8 month term lease, it would solve your heating through the winter problems and free the house to be placed on the market in the spring - around here that is the best time to list.