Regarding price, do you have any suggestions on how I can get him to agree to a lower price?

Guaranteed others are fine with a lower elevation, but I do not have water run over my foundation inside.

Obviously you want to lower expenses while maximizing revenue. 

Mean while i would be building equity, and if rates do lower, or when the term ends, could refi for better rates and then maybe cash flow.My questions are:Is this too naively optimistic?

Cheap houses in lower class neighborhoods will get you cash flow with a lot of headache.

Since your dad is a contractor with access to affordable labor, the renovation costs could be lower than average.

My guess solely looking at your numbers is that it's an older/distressed property which means you have to account for more costs in capex. 2nd thought being it's not in the best of neighborhood then you'd have to take into consideration lower quality tenants/ neighbors and maybe increase expected vacancy and late payments.

Quote from @Melanie Baldridge: Why I like investing in real estate more than 401(k)s.Both offer tax deferrals, but here's the difference:If you're making pre-tax contributions to your 401(k), then withdrawals = ordinary income tax.With real estate gains, you're paying capital gains tax (which is typically lower).Plus, RE investors get:1.

It's a more affordable market and lower property taxes, so you may actually have a chance to cash flow.

Just google the following: - special assessment - zombie condos - Florida condos (look for recent news)Since you are not living near the properties anyways, why not look in a landlord friendly state where the purchase prices are lower?