Tax sales vary dramatically from state to state and the quality of the title and type of deed can vary also. 

Always do a rental agreement, this not only sets expectations for guests but is a legal document that can dramatically reduce time in court if it goes that way.

Keep in mind that a "eye for design" is good but not as critical as other qualities such as "smelling blood" (recognize a deal when it appears) - and even more important, to think on how to make it happen at the right cost (construction costs can differ dramatically, when you take non-local labor and know how to get the materials on cheap etc).

Each of these variables will dramatically change the advice for the individual asking this question.

Our market has seen a dramatic increase in activity and interest from NY residents.

Amazon might have a dramatic effect on some of these markets like Raleigh or Indianapolis...but on the bigger wealthier markets like here, Boston, NYC/NJ, I dont see any big deal other than the immediate neighborhood where it lands.

That being said, your overhead can increase dramatically.

Depending upon your area that could change dramatically.

Scott/Heather,From your numbers, you have an excellent deal.Be sure to verify if the tenants pay the utilities or if it is an all bills paid (by owner) Owner paid bills can dramatically increase your expense ratio.What stae is the investment in?

Any particular property in any particular year will vary from this benchmark, perhaps dramatically.