If you get the note, then go to the owner and request the deed (deed in lieu of foreclosure) and if they balk, see if you can get it performing, or foreclose.

That affects relationships, plus job satisfaction and performance.

After acceptance I got a report of termite inspection and treatment, but there is no evidence of termites where they said they treated them, nor is there a sticker indicating that treatment was performed, but there are active termites in another location. 

I prefer to stay on the safer side of notes and deal with performing notes.  

The Southeast Valley in general is performing extremely well and is definitely a seller's market.

I have my previous home in my rentals and it is by far my worst performing rental.  

No telling if that's a great price without being on site and seeing the true scope of the work being performed but my initial judgement is that it seems high.

If you're not sure how to perform these calculation, I'm sure there's many resources on this site and online that can assist with these calculations. 

If you want to take things a step further, focus on one tenant and learn everything you can about their business operations/stock performance, site selection criteria, preferred developer network, lease structure(s), cap rate trends, etc.  

So you have to find a property that is likely not so nice, and buy it for a "AS-IS" price, then make improvements and enjoy the reward.Curb appeal drives rental pricing; If an neighborhood rents for $1,400 normally, and you find a rundown home renting for $950. 9 out of 10 times, its renting cheap because the LL wont improve the property, and likely has non performing tenants in it... so you buy at a cashflow price on the $950 minus repairs, then rehab and rent it for $1,400.