I just don't think the appeal is strong enough yet.

Unless the area is appreciating very strongly (20%+ a year), I wouldn't touch it.

Rbader, Mike can definitely be a little overly strong in his reponses, but what he is saying is right.When factoring an income/expense statement for a rental property, you will need to factor in ALL the expenses.

Due to the presence of a junior lien, it isn't likely the bank would accept a DIL.Perhaps the owner/mortgagor misspoke.The Bankruptcy Trustee might consider allowing the sale of the property, but be advised it is the Trustee's job to realize maximum proceeds to satisfy the creditors.

That's a strong advantage.

my mom, and all her tenants love it there, because it has a strong community feel to it.

I sold my first one to a friend like 3 years ago and that one is still going strong.

I can do pretty much anything (of course, except for things that are impossible for me due to the fact that I am a female - I am not that strong as a male).

If you feel strongly about this, as it appears you do, why not have a meeting or conference call with you, your sister and the loan officer to discuss it specific to her needs/wants?

Obviously if your city has strong job growth and isn't as focused around the RE boom of the last decade, I don't think your market will get hit as hard as others.