Thanks for the advice but this management company is definitely licensed...don't want to call out names (yet) but they operate thousands of units in at least 4 states...they seem to value expansion over client and managers retention and constantly makes mistake or fail to follow up on issues...some of the staff like the contractor kickback feels very questionable and unethical.

If either of these are a no than do not buy it.It is not an investment property because you made the biggest mistake ever: "plus its a house we like" You grew attached to the house.

Is this a mistake?

Here is some information:Appraisal Value last year: $80,500Comparable Average Sales past 3 months: $85,000 - $115,000 FHA Loan Balance: $62,000P&I + Insurance and Taxes: $496/monthWater: $35/monthGarbage: $35/monthBedrooms: 4Bathrooms: 1Lot Size: 7,200 sq ftRepairs needed prior to renting OR selling: 1K - 3KParking: In back, no garageRent Est. for this area: $1,000 - $1,200Schools: Probably the worst aroundNeighborhood: Getting better. 

Facebook Marketplace and Craigslist are typically the worst. 

Worst Case: You may be stuck with 12-24 months of cash tied up until you can prove the appraiser's numbers were off and a new appraisal is warranted. 

If you aren’t in a premium area, I’ve learned to lead with the worst aspects of the apartment (undersell) thereby weeding out the dreamers and surprising the applicants that survive the - less than flattering marketing - (over-delivering) with more than they expected visually.

What was your worst/most complicates closing that you learned from the most?

Thank you everyone and hopefully someone reading this can learn from my mistakes :)

Worst case you may need to dig out around the basement and build temporary retaining walls and building cribbing while you replace the basement walls.