WDO ISSUE - This is a Wood Destroying Organism issue that should be corrected.A licensed contractor will need to "sound"/inspect the structural members under the home to determine which, if any, should be replaced.

Hey BP, I’m looking for any advice that an amateur investor like myself can use in order to locate and determine a less expensive market in my general area where I can purchase and rent out my first property.

And pick an accent color for the front door.

Base on your calculation, $6K x12 = $72K/YR, then minus 12K/Yr(Tax, Ins, Mx) = $60K/yr then divided $783K, looking at cap rate (NOI) 7.6% which is high compare to the bay area cap rate.Usually high cap rate (8-12%) = high turn over tenants (Crappy tenants) lower appreciation.Lower cap rate (3.5 - 4%) = Quality tenants and high appreciation.Been an investor in/out of CA for the past 10 years, I will always pick bay area.GOOD LUCK!

Quite a bit of your direction will be determined by valuation and timing.  

If your current Property Manager is sending you to an attorney to determine your responsibility then it may be time to look for a new Property Manager.

TO MANAGE THE UNITS BY TAKING CARE OF TENANT PROBLEMS, REPAIRS AND TO PICK UP RENTS HE IS IN HIS 80'S NOW AND SAYS IT IS TOO MUCH OF A HASSLE FOR HIM NOW BUT NEEDS THE INCOME 

One of the first books i picked up for recreational reading was Rich Dad Poor Dad and i knew then that i was going to eventually get into real estate investing.

Looking at picking up a duplex for 15k, needs 30k rehab.

I am cherry picking.