There's also no reason why extending your hold period can't boost your return.  

Call up the collection agency and dispute the information, it'll be removed from the scoring and boost you up.

Negative initial cash flow, but increasing over time.The above are generalizations and do not apply to every single property at every single point in the RE cycle, but it is a mental framework to understand some of the dynamics at play with pricing premiums in different markets.

I just feel I need to gain a lot more knowledge on different topics in real estate and investing and boost my financial literacy.

Paul - "Steady hiring, moderate apartment construction align to restrain vacancy. "  "Robust demand for apartments is boosting rents.  

But I would mentally prepare myself pay at five figures in legal fees and costs (whether that's $10,000 or $90,000 depends on the complexity of the case).

If holdover tenant remains then you could be rehabbing and selling in the heart of winter ( not recommended ).Sounds like the owner has big health problems and does not have the mental energy to get them out.

I'd boost up the vacancy rate (I prefer to assume 1 month vacancy per year so thats 1/12 of the monthly rent), so that may lower the cash flow to around $130ish.I know nothing about your area, but I assume its a decent neighborhood so in that case it seems like an OK/borderline project in my view - a single versus a homerun.  

As you stated there are things after 3 years that will need to be done so it might be a good idea to mentally bank on there being some items in need of repair.  

I've been negotiating with the sellers of a small Inn and am having trouble finding financing for the entire amount because the sellers have been absentee owners, running the business from out of state and with little effort behind boosting the revenue for 9 years now.