I have noticed some potential low cost rental properties in my area for purchase.

The real reason was long-term low interest rates.

If they stay low a long time and you take the money you save and use it to pay down the principal, you may have made an excellent choice.My opinion is most people are better off with fixed rate loans.

@Alex Craig  one part of my e book on buying out of area rentals goes into insurance and these very issues.I suspect this is going to get much worse before it gets better.. how do you rehab a house with the tenant in them.. maybe a light turn over thats it..this person looks like made a cardinal error in buying low end rental in bad neighborhood probably becasue the numbers looked so good..

Or did I do the right thing by lowing my offer due to the work it needed.

Agents are usually not investors, so they just think investors make low ball offers. 

I agree with the previous poster: The sooner you can move up into >5 units, the better....UNLESS you want to use FHA/Fannie/Freddie financing (low down payment), or unless you want to live in one of the units.

I bought The Book on Investing In Real Estate with No (and Low) Money Down and am working my way through it. 

I'd get a cheapy fridge from lowes or Sears and pay for delivery and disposal.

Real Estate Investor specializing in low to mid size Multi-Unit properties.Mission - To acquire various Multi-Unit properties and continue to diversify our portfolio.