After the housing crash, my long time tenants moved out and I was moving off to grad school, and I could not sell my house (I was way underwater on the mortgage), so I ended up renting it out.I only recently got above water on that house, and it is not the best investment property, but I'm keeping it for now since it is finally generating a positive cash flow.I've recently come into a lot more money (self-employed), and am now in a position to buy even more properties, but I want to do it right this time.

I'm assuming that pre-foreclosures are in the same boat as well.Actually, pre-foreclosures are in more dangerous waters, a short sale the bank just won't go there, screwing around with a foreclosure takes on a blend of federal compliance and consumer issues, cause a delay and you can get nailed.

Electrical, plumbing, exterior paint, hot water heater, refurbish boiler, flat roofs, Windows.

The property has a new bathroom, kitchen, water heater and heating (two years old) he also added a new privacy fence and waterproofed the basement.

We have had numerous water issues, from roof leaks, to plumbing issues, to tuck pointing all pretty much associated with the age of the building. 

This is a case of cold feet.   

Tired of the cold here .Thanks 

Had tenants in it before and they didn't see any water dripping or anything like that. 

If not interested in sanding (and I don't blame you) you could try TSP and water.  

Daniel,have to know how the numbers break up, as Kevin was saying, did you include management, electric, gas, lawn care, leasing fees, water and sewer. if you do not hire a property manager are you taking care of managing the property yourself ?