Today's interest rates are lower than when I started so maybe it works in some areas. 

That keeps me to search for lower priced homes.But I am ready to invest and I can't wait for correction to come, It can be years.Where else would you advise me to focus if you think SFHs up to 60K are not rentable in this time? 

CoC return is not that high and Rent is about 0.9%, closer to 1% rule but on on lower side. 

We're hitting the end of this current development cycle, with construction costs, lowering rents and lending changes making new build projects less feasible, but the next building cycle shouldn't be too far down the road. 

You are likely to end up with a bit of turmoil with that cheap of a property (probably not in great shape and/or in a bad neighborhood) and lower-quality tenants (evictions, excess repairs, etc.).

Even with a manager things may arise that cause you stress and take your money.Unless lower class investing is your main focus and you have the capital and comfort level in this arena I would not do this deal. 

It doesn't affect the price.If you want a "discount" for the work needed, then you would lower your offer to the bank or suggest a credit of $1,000 to be given at closing.

Just out of curiosity was he one of the lower bids?

Obviously someone is happy to invest their money on a fixed up property with lower cap rate. 2.

There are different credit requirements, but the rate should be lower.