You might also consider certain areas more on the outskirts or less high-demand areas, like parts of North Tampa or Town N Country.

I am in the Old Town area, very close to downtown, my rent is $1260 per month and includes most utilities and even parking.

I asked the tenant (via email) if the dog belongs to her parents who were in town visiting.

I guess my KS mind is blown - there are very little if any appreciation plays here - much less making 6 figures.I'd have to be even more worried you're making that sort of a gain on a town home that the bottom is due to fall out of the RE market again.

I just quickly checked craigslist for 2BR in the same area of Charlotte and I'm seeing $850-$1300; and most of the units on that higher end are in town homes.

In Massachusetts there are a lot of counties where FHA will lend this high but for argument's sake, let's explore the other loan type....conforming, conventional.A conforming, conventional rehab loan would required your sister to use 15% down for a 2-unit property that she will occupy. 

There are high income towns like Cohasset and Hingham if you prefer those - though there are not many MFRs there.  

Other information: smaller town, but as of the past two years, home sales have seemed to be pretty steady.Thanks so much in advance for any information/guidance.

He calls me and asks if I’ve been down there since I am from NYC (I’m in town 3x a week).

My lease has a clause that I have the option to terminate if the property is inhabitable for more then 90 days (which it will be)- but the town has an ordinance that says I must re-offer the units for rent.