To me it’s a myth that any thing low price is insulated from a downturn because “people need a place to live”.

Right now my expenses are pretty low but would like to eventually bring in about $4,000/month.

I'm currently paying above payment on these two existing properties an extra $900 a month to pay down the mortgages more quickly, which could quickly be freed up as well, as they both have low interest rates so this is not really the best use of my money. 

He's willing to owner finance it but after going through comps with my RE agent partner, the house wouldn't get any action unless its in the high $870Ks to low $900Ks.

My expenses:P&I: 1260Insurance: 150Taxes: 58 (yes, it’s that low!)

Yes, im factoring in all expenses:P&I: 1260Insurance: 150Taxes: 58 (yes, it’s that low!)

Either capital appreciation (buy low sell high) or cash flow.  

On the other hand, my income's extremely low ($25,000 a year maybe).

In areas with a low cost of living.

I have people that run it down to lightbulbs, each light switch and outlet cover is counted and figured in to their analysis. 17 pages of SKU numbers from Home Depot or Lowes, who they are having lay carpet and the cost they are paying.