Only stop moving forward if the math doesn't work.An 1890s property is going to have a lot of issues. 

The prices are starting to come down but have about another 40-50% more to go before the math starts to work as a viable investment.

I am no expert on PM .As for expanding your business  its just a math problem and do the numbers work.best of luck with it..

My math matches yours. 

I am a full time 8th grade math teacher.

So, for easy math, let's say $1 million as that's roughly what I'd get to sell them in current condition after transaction costs.

that's why high turnover is so expensive - you're patching things up / cleaning up / and then paying another month's rent just to get it rented on top of any vacancy.and again - that's just hypothetical math. 

RE is nothing but math, just know your numbers ,Buy right, reno right, rent/ sell right, YES that simple LOL 

I just did the math myself and you're looking at $300/mo per property or something like that (of course depends on where you are and what you buy).Take it slower - buy one very good property (preferably a serious fixer) and get it done, then Re-Fi and keep moving....

After doing the math, it looks like claiming section 168k now if only allowed against federal might be more favorable than reclassification.