Their home has been vacant for over 4 years and is uninhabitable as the city water dept cut off service due to a faulty septic system spilling sewage in both our backyards.

What if they build just outside the city limits, so they are not paying city taxes?     

I've lived here my whole life and have really seen a dramatic change in this amazing city. 

The neighbor was the hottest in the twin cities and this house has 83 businesses cards of realtors who showed the property.

Looking to purchase a duplex, triplex or fourplex in Panama City and do short term rentals for summer months and long term through the winter. 

There are certainly value-added opportunities in the city.

Let's assume that the neighborhood is a C class and the median income of the city is greater than 3X of the market rent.Here are some of the considerations I've come up with so far:- Units are in need of renovation and capex is too high or not available- Unit quality is not the same as market - Seller is worried about losing tenants due to increase- Vacancy rates are high or filling units have been difficult- Rent increase would take multiple increases over multiple lease periods to get to market rate if seller is trying to retain the same tenant- Seller inherited property and just want to liquidate- Seller needs to liquidate quickly (financial burden, sickness, quick exit from land-lording)It seems like I might be missing a warning sign about a deal if they are selling with current rents that are under market; but again, this seems to be most of the properties I've underwritten.And in the same vein, what should I be worried about when purchasing a deal with under market rent with the intention of raising them after purchase. 

I generally recommend if you're not going to buy a property in the city/market where you currently live, the next best place to look is where you have family (and presumably a place that you'll visit relatively often and easily).What is your price point and are you looking for turn-key properties or something along the lines of a "fixer upper", assuming you buy in Peoria or a similar priced Midwest market?

I work as an acquisitions associate with BPG Holdings, a local real estate investment fund in Alexandria, and also work as a realtor for our fund's brokerage team, assisting clients with investment properties in the D.C. metro area.I've recently created a series of reports focused on the city of Alexandria and its sub-market development prospects, which I believe alongside other macro trends will make the city an amazing buy-and-hold investment for real estate investors.

Quote from @Makani Donaldson: From what I understand, different islands or cities have different rules, and they are getting stricter.