If I let the tenant stay in the unit I was subjecting myself to a possible lawsuit for mold growth.

Grow the eff up.Sadly there isn't a right answer to deal with this.

Columbus is the only Ohio market that has seen rapid growth in jobs and population.

Just closed on a C5 zoned property in Colorado Springs on a major street less than a mile from downtown (currently going through growth explosion) and 1 mi to Old Colorado City hub (very popular tourist destination), and a 1200 sq ft commercial workshop(detached) that I can build out a second (interior floor).

Would love to hear if anyone thinks these numbers / assumptions are wildly off or too conservative.Acquisition CostPurchase Price = $200,000Closing Costs (at 2%) = $4,000Due Diligence (at 1%) = $1,500Up-front Renovation Reserve = $5,000Total Acquisition Cost = $210,500Financing:20% down payment = $40,00080% loan (likely a major lender, traditional 30 year loan) = $160,00030 year term @ 3.2% (educated guess with very solid credit)Monthly Expenses:Mortgage Payment = $691.95Property Taxes = $120Insurance = $55Property Manager (soup-to-nuts) = $159Other Variable Monthly Expenses = $40Capital reserve monthly deduction = $37/month (5% of net income withheld for capex)Assumptions:3 months to renovate / update post acquisitionProperty rents for $1,400 / month (and assuming a 3% annual increase)20 day vacancy assumption = 5.48% vacancy rateTenant takes occupancy month 3Annual expense growth rate of 3%Expected / Target Returns:Monthly IRR (w/ financing) = 15.48%Monthly cash-on-cash return (average over 5 years) = 2.79%Monthly Net Operating Income (year 1) = $798Capitalization Rate = 4.79%Kyle

To start: Population growth, Average household income, crime rate, job growth, unemployment. 

@Cody Buckingham my first investment market was Honolulu on the island of Oahu so it is doable and the is real potential for growth.

@Paul Walker Out of the Midwest, I would recommend Columbus OH there are lots of job opportunities and population growth.

Sometimes that might mean mild profits during the growth phase.  

In addition, the larger you grow the more you tend to work your way into portfolio insurance.