Even without it, you're likely to be cash neutral or negative, on a property that will appreciate slower than a real house in the same area. 

These are generally Not Fixers - Most sellers in this situation either:1) have to sell quickly or 2) don't have enough equity to cover real estate fees, closing costs and other fees or3) don't want to or can't afford to do repairs and or don't want to have people traipsing around their house or4) have bought another place and are carrying two mortgages or5) lost a job or have a medical emergency, etc or6) are in pre-foreclosure and have to do something quickly or7) are inherited with a mortgage and can't make the payment or8) have a job transfer and need to sell quicklyI allocate $25,000 per property.

I recently graduated from the University of Richmond and will hopefully enter medical school in one to two years and in the meanwhile I am working as a researcher in a cell biology lab. 

About 2300 sqf,medical officetenant stay there for 6 yrs already,just renewed another 3 yrsasking for $560kafter all expenses,net income $54k/yrcap rate 9tenant take care of all fees and maintenance.rental raise 3% every year.my opinion: not too much appreciation,good cash flow.QUESTIONS:is this a good deal?

My oldest brother lived when he did a residency in medical school so I'm somewhat familiar.

You can hold multiple HSA accounts which can allow you to have some accessible for medical expenses and invest the rest in longer term investments.  

You have to be very poor and/or have medical ailments, which they do, to get it.They can come up with the security deposit and extra security deposits for each dog.   

Part of that $40k may need to be used for living/medical expenses etc.

The rental prices are high and people like the location close to the medical center and 410 and I-10.

Admittedly, if a nationwide recession hit, and property values and/or rent dipped 15 or 20%, this person is subject to loosing 15-20% of $900k in properties, rather than the widow's 20% of $225k.Then, if you use the BRRRRR method, the cash-out refinancing, once you have enough equity (usually through remodeling the property, but sometimes through market appreciation) allows you to ideally grow a portfolio of rentals with 100% financing....and zero of your precious equity left in the property.....I know of a BRRRR investor that turned $80k cash into 30 rental properties worth about $8million ($5million in loans, $3million in his equity) in 5 years....granted, he bought at the bottom of the 2006-08 recession and benefited....but much of it was the buy at a discount and remodel profit.Then decide if the risk/reward is right for you.You can say "look what I did with low leverage" (slower)....or "look what I did with maximum leverage" (faster).