Rather it matters what kind of return you can generate over time.

Was there any kind of subdivision, was this already a separate lot?

Anything you buy as an investment - if we define investment as increasing your overall financial stores, i.e. getting more money out than you put in - has to gain more value than its present day value, meaning that we have to believe that what we are buying is being sold at some kind of discount relative to its potential.

With that kind of equity, the elimination of mortgage insurance will offset the increase in rate (or at least soften the blow). 

Look at other properties that are for sale in that price range and see what kind of appliances they have.

Does anyone have any experience doing this and what kind of ratios should I look for in price to make sure that I will be covering most if not all of at least the mortgage and taxes?

What kind of similar steps should/could we take to vet a property manager co?

Narrow down the strategy (if rentals, what kind of rentals, which neighborhoods, etc). 3.

The owner is doing this kind of deal because her husband passed and she wants out of the property.

What kind of program is this?