Purchase prices there are lower, but rents and demand are lower as well, and it kind of balances out.

I would also look into getting a portfolio lender, or a smaller bank who will hold it on their balance sheet.

Obviously both have slightly different tax consequences, affect your balance sheet differently with regard to net worth, and many more implications.

What do you think would be a proper sum of cash to offer? 

With proper management and updates, I should be able to increase gross rents by $160 monthly ($1,920 annually) after the first year.

I'm trying to find the balance of learning as much as I can - primarily through reading, researching and listening to the BP podcasts - and just getting started, knowing that I'll learn a ton as I go.

What is the proper depreciation convention, half-year or mid-month?

There was also a fair amount of tinkering with the boiler systems to get them filling properly which resulted in a lot of trip charges. 

He's asking me to pay 50% up front and the balance when the job is finished.

Tell them you want the house to be safe and properly inspected.