Just because they're investors doesn't mean there weren't life changes (divorce, job loss, etc) that led to the place being in poor condition now.Good luck!

So I can make a more rational decision. 

I had him read Rich Dad Poor Dad last year and he's been lurking and learning with plans to invest sometime next year. 

Hi BP,I've recently discovered this community and am very thankful because I feel I was able to course correct my mindset before I made my first big financial decision in real estate.

Do a couple of math examples and compare your rate of return, factor in potential appreciation (its a bonus but dont let it rule your decision making process) for example house A costs 100k brings a 8% annual ROIHouse B costs 50k but brings a 11% ROIthen the answer becomes obvious, you want to deploy 100k into 2 of house B.

Now my decision on cash/leverages is alot more clear. 

I am not saying it is right or wrong, but it does help the rich get richer and the poor get stuck renting.

However, just because you have poor credit and not a lot of money doesn't mean a deal still can't take place.

And thanks, I'm trying my best to do all my due diligence beforehand to make a great decision on this first investment property.

For me, it wasn't so much a decision of "whether or not to buy cheap distressed houses", so much as it was an issue of "whether or not to begin investing in real estate."