Namely higher rates.And if your actual dscr is below 1 then you're in negative cash flow territory. 

Have you ever run into a situation where the essential repairs bumped the Price into “not a good deal” territory?

Hourly gets into fun "employee" territory, which I would not do. 

Is he running a very established business, lots of web presence, social media, referrals through “next door” type boards, to go after in small claims court.

They partner with banks that have a physical presence, so you can use their ATM.

It is a much more affordable market to get into, yet we are seeing great appreciation returns, with a stable job market to include education, solar, energy, manufacturing and military presence requiring housing for all.

I had not even considered those territories. 

Also my friend live nearby said the property is in a drug dealer territory.

The military presence here is something that I’ve known for my entire life and I’m very interested in becoming an investor in the area.

While still technically in seller’s market territory, inventory is well above extreme lows seen in recent years and has held steady for many months now.