My friend had done just a huge amount of work and the finished product was gorgeous.

One currently vacant may get over that - base rent of $875, 3 pets at $25/mo each, plus rolling in water sewer garbage (a good idea in low income, since they leave you holding the bag at move out and the city doesn't care), but not sure that counts.Anyway, we always laugh that we are doing all this work and only earning $15K/ year.

If you go the route of un-licensed contractors and short-cuts, and do a lot of rehab, then the inspectors will find out about you in a bad way.

Because there is a shortage big time for rental housing.. 10 years ago only 6% of all SFR's in this market were rentals. with the big chill on the economy that probably spiked to 10 or 12% compare that with the mid west were is 40 to 55% in most markets...And then you add out of state and out of area to the mix in the mid west and its darn tough on the C properties to make them. work and they are anything but passive you will be managing your managers all the time. and one day your tenant will somehow get your phone number and call about something not working int he house and get it fixed etc etc.

The numbers all work and I will be making them an offer.

** I am very handy, don't mind doing hard work and can fix lots of things myself.Interest $15,265.40Property Tax $5,700.00Insurance $1,000.00Maintenance $500.00Water, trash, elec $2,100.00Cost to live (Interest+ Ins+Tax) $23,465.40Cost to live (after deduction) $20,000.00** Appreciate everyone who responds.

It could be a good deal, but the age, work and distance would make me hesitant to acquire this property as my first deal.I would probably look for something newer that would produce similar income as one unit. 

Just because you're there, doesn't mean you're invested.It's hard, finding balance between work and family, I admit.

Building inspectors notice you doing work, issue a stop work and you have to pay penalties and maybe redo work.  

It's possible that firm will handle the title work and closing for the REOs but they have nothing to do with offers.