I was initially thinking, if this is a complete gut job, everything will be essentially be brand new and i maybe able to attract decent tenants.

I have taken initiative to learn as much as possible through books, podcasts, blogs, BP, and other resources (still a lot to learn!). 

There are IRA and other designated IRA that can bring down your AGI.  2)If you make way over 150k, than I would suggest investing in a diversified property group with different outcomes (some rentals might not have a good future appreciation or in a bad area, but have a good cash flow that will absorb your other rental loss ). 3) Invest in other business as a passive investor where you can generate passive income.

I know that MF properties are valued by the revenue it generates but I still want to compare since we are reaching out directly to owners and dont want to go in completely blindsided.

Yes, your property was initially overpriced at $275k, however the drop to $259k seems about right for a one time flooded property. 

How much time did you use when you decided to become an investor to get those initial deal done?

FYI - I would only make the initial call to ask if this is the right place to have your tenants start. 

My income is only around $1,900 per month (I am in graduate school right now).Just wanted to get some initial thoughts on my situation?

In summary, I think it’s a good deal if you’re strategy is correct and you aren’t going to get discouraged by a lack of initial cash flow!

I note that you asked specifically about “cash-flows”, which has multiple components each treated differently for tax purposes.In general, you can start with NOI, next you have debt service and cap ex, which can get you to cash-flows.The interest portion of your debt service is tax deductible (possible subject to limitations) and the principal portion is not because you get basis in the asset for the loan principal, which generates a depreciation deduction.Similarly, cap ex is generally not deductible currently but the expenditure is capitalized and depreciated, similar to the initial basis in the asset.In summary, you have cash and non-cash tax items that cause your taxable income to differ from your cash-flows and taxable income * tax rate determines your tax liability.