Currently, we're doing market research to see what location would be best.  

In my opinion, it’s a great location—centrally located between New York and Florida.

I am selling a Duplex located in Ecorse Michigan.

Did you target a location and find a contracting company first to be prepared before hunting for deals?

Hey Raj, When you have a property out of state, deciding whether to form an LLC in the state where the property is located or manage it through your home state LLC involves weighing several factors.

Avoid investing in a poor property or poor location, simply for the depreciation benefit. - If you are investing passively in a syndication with bonus depreciation, make sure to vet the sponsor and understand the investment vehicle before you invest.

The buyers have reported that they are unable to obtain financing since the duplex (built in 1907) is located in an area that is zoned for single family homes (Toledo zoning was established much later).

Looks like mortgage is over $4K/month on a 30 year mortgage.Purchase Price $950,000Down Payment $70,015 7.37%Mortgage Insurance 35000Closing Costs $18,000.00 4% $18,000.00Interest Rate 4.25%Term in years 25Financed Amount $914,985Payment $4,956.82Renovations/Repairs $20,000Out of Pocket Costs $108,015Monthly Assumed % Manual InputRent $6,000Property Mgmt $480 8.00%Vacancy $300 5.00%Maintenance/Repairs $180 3.00%CapEx $45 0.00% 45Insurance 50 0.00% 50Property Taxes 419.7 0.05% 419.7Rental income tax 0.0 25% 0.0Expenses Subtotal $1,475"Annual % Increase(rent + expenses)" 2.5%1% ruleGross monthly rent should be >= 1% to total purchase price0.63%GRM (Gross-Rent-Multiplier): the lower, the better13.2Cap Rate (Net operating income (annual) / total purchase price): the higher, the better5.72%Net Income After Financing (/mo.) = Net operating income - financing costs-$432years Monthly CashFlow1 -$4322 -$3183 -$2024 -$845 $386 $1637 $2918 $4229 $55710 $69511 $83612 $98113 $1,12914 $1,28115 $1,43716 $1,59717 $1,76118 $1,92919 $2,10120 $2,278 

@Neal Daftaryat existing rents, with property management, you will probably be significantly negative each month on this one. 

Let me break it down in simple terms.In Massachusetts, if your property was built before 1978, you cannot rent it to families with children under six unless it complies with the Massachusetts Lead Law.