@Seth I don't mind putting in the extra 30-40K to be efficient. 

Make sure you buy it in an LLC so the fines dont go to you just in case.You'll have a month or three to do full due diligence, which is good because you want to be super thorough, but the numbers work well enough for the extra hassle with what little you gave us.

I'm calculating a monthly cash flow of about $250 and if self-managed an extra $130.

(e.g. she moves someone extra in, she starts paying late).

LOL no need for the extras lol 

(Without all the extra costs included) So basically, I just wanted to get some feedback on what you guys thought about low income areas.

He isn't thrilled with tying up 5 houses but like they say beggars can't be choosers.Do you know how much emphasis they place on condition?

They will not be in a closet but may be separated by a 4 feet wall on the side.The reason I am asking is that there are already all connections available if I keep the washer/dryer location same but then it is in the master bath.The alternate design is to move washer/dryer to a side, in a closet and be totally separated with master bath but then it will cost more as I will have to pay for extra plumbing/electrical and vent.any ideas?

I do not have the 20k to 40k for the extras they are asking. 

If you really just want to have something paid off you can put extra principle down at your discretion.