What should I do , save cash and Wait till the market stabilizes  a little in a year or 2 ( hopefully )  or invest in a different department like retail commercial  that may yield 8-10 % ROI ?

No one wants a 5+ bed house. 

I typically look for blue collar areas that are 3 bed, 2 bath, 2 car garage built in the 1980's.

My property taxes are higher for a 2 bed 1 bath SFR in Indianapolis so that shocked me. 

Make sure the comps are good; same style of home, similar square footage, beds/baths and so on.  

We offered $375,000, and all the surrounding properties in the neighborhood with comparable beds/baths are valued at $5-600,000+ (according to Zillow), so it appears we have a bit of opportunity for forced appreciation.

You can still rent a nice 1-bedroom for $1400 or a 2-bed for $1600 (on average). 

Hey everyone, I'm fairly new to real estate investing & have been researching lately trying to understand & analyze properties better & I stumbled upon this unique listing that caught my attention in CA:Commercial Building Storefront (retail building) + Opposite Side of the lot is a residential property 3 bdrms + 1 bath Year Built 1951 Price $219,000 est cap rate 10%-Total Lot Size 6,000 sq ft /Building sq ft 2,262 +/- Commercial Building 1,162 sq ft +/- /Residential 1,100 sq ft +/-* Lot stretches between two parallel streets, both properties are back to back (but not attached to each other) each facing a different street (Commercial Building)-has a showroom, back office, storage & bathroom complete w/shower.

Is there some empty "big box" retail or warehousing you could redevelop? 

Even for retail space, I see businesses in shopping centers with barely 2 parking spots per 1000 sf when the requirement is 4.