All the other house on both sides of the street are 1.1M and over so there is upside to the property.

Dude you are book smart but need some business/street smart.  

In no particular order I have listed some of the most popular markets for out of state investorsCincinnati, OhioDayton, OhioToledo, OhioYoungstown, OhioCincinnati, OhioMemphis, TennesseeSaint Louis, MissouriIndianapolis, IndianaDetroit, MichiganErie, PennsylvaniaLouisville, KentuckyMilwaukee, WisconsinJackson, MississippiEach of these markets is popular with turnkey investors because of the low barrier to entry, high rental demand & high rent to price ratio.

Don't assume that your super-safe area doesn't have a bad street with bad neighbors.Don't over-do it on finishes.

There is NO parking in the street and 'guest parking' is available around the corner.  

Many credit unions have introductory rate...like 1.99% for the first year then a rate based on prime in the Wall Street journal so be sure to shop around, make a list of credit unions in your area.

I don't get anything by recommending Darren either (except street cred).

If you're looking for true tiny homes, there are a couple of properties made out of a single shipping container (about 360+- SF) on Poplar street that I think would make an interesting investment.

Contractors, investors -why do tear downs cost more than a lot in the same neighborhood or even same street?

New Zealand has a lot of renters so look into what is the most popular type of property to rent and what that sweet spot is in market rent that allows for a large pool of qualified tenants.