They were worried that our development is going to lower the value of their home- and it absolutely will- no one will pay a premium for a small, old home that butts up to a big apartment building. 

The lower the ratio, the more underserved the market. 

., with lower leverage and less cash flow on a property.

They are asking $375K but not getting it - so not quite $20k underwater from asking but they're offers so far are around $350k and lower.

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

You get PM experience, lower expenses, you don't live with your parents anymore, etc.. 

Even if you have a higher return in the stock market, you'd be doing it with a lower basis after tax and it will take a long while to recoup from that. 

Further, running a very quick and simple valuation based on $900 rents, 8% vacancy, 25% op exp margin, and a 9% cap rate, I'm coming up with an ARV of around $83k, so I'd pass if I were you unless you can get a much lower purchase price.

G'Day Alejandro,As a few have already mentioned, take a peak at Toledo also.In my opinion lower potential for long term appreciation but solid/"boring" cashflow.I prefer my portfolio to be "boring" but cashflowing lolLow entry points (Sub $100,000), high rents (Above the 1% rule).Blue collar working class decent folks that will stay and pay.Depending on the area but no derelict homes, yards well kept, cars with wheels and all tenants are employed.Plus, all are sophisticated enough to pay rent online so property management doesn't have to collect rents with bullet proof vests and shot guns lolI'm bias toward Toledo but it's worth considering.Wishing you much success

I’d definitely feel more comfortable lowering my expectations by half or a third and gradually scaling up by adding one small multifamily at a time.