It generally performs better as an investment property when considering CoCR.  

I thought someone might have a list of keywords that performs well for them.Thanks, Rob

Some investors might balk at the percentage but when you factor these are low income areas and the rents are low the PM isn't making much for all the drama.If you were a PM and could manage an asset in an upscale area instead for say 8% of 2,000 rent that is 160 a month.13% of 600 rent is 78.00 a month and you are dealing with double bookkeeping, high frequency of damage and evictions, multiple trips and constant monitoring of the asset to keep it performing etc.So it's easy to see why many PM companies will not even consider these places.

Value of the collateral (LTV, what is their exit strategy should it become non-performing)3.

You need to perform due diligence first and foremost.

While I would personally find this appealing as a personal residence I am not sure how they would perform as a rental.

Also, your money is now in a performing investment (free rent for you).

Although for me as a Past HML and current NMLS broker ( inactive currently) why you would want to jump into NPN instead of looking for performing especially starting out..

You'll slowly build passive income, equity, and most importantly, you'll learn how to be a landlord and perform simple repairs. 

When they indicated it was fixed during the due diligence of the property, did they provide proof (e.g. an outside vendor invoice and what was performed)?