I don't do more than two a year unless there are red flags (poorly maintained lawn, regularly paying rent late, etc) that may indicate a problematic renter.

Also, I don't thing the ARV would be more than 120K.Are these all just red flags and I should just drop it all and walk away?

Be bold my son, we have 16 year olds locking up stuff over the phone and some guy doing this without ever seeing the property or meeting the buyer and seller (unfortunately one buyer got screwed over, but mere technicality).Why don't you just learn real real estate? 

The only problem with Kansas City is that the real estate market is red hot right now making inventory very low.

When a tenant stops talking, that's a major red flag!

I'd also paint each of the doors a different colour so they can say I have the red door or the black door.

Any red flags upfront is a no go for me.

Even though the spread on your payment vs. rents received is decent, if you account for all of the deferred maintenance expenses you are now having to pay for, you are most likely in the red.

I only have 40k saved and feel like this may be a bold move for only the second property.

For example, often fire damage is water damage--they put the red stuff out with wet stuff.