Then repeating and slowly building up a portfolio.I am actively working with a good agent (after eliminating 5 others) and it seems that most multi-unit properties are in undesirable parts of town and are extremely old or are priced so high that they don't meet to 50% or 2% rule.

Studios and 1 bedrooms in undesirable apartment complexes.$750 -> - 1 BedroomsOver $750 one bedroom units become available.

I have been looking in Germantown for a while (mostly listed deals) and everything is overpriced, which takes away all of the upside potential, or on one of the undesirable blocks.I think it is a great neighborhood as well, but have yet to find a deal that makes sense from an investor perspective.Good luck on your deal too!

So unless the realtor was way off, there are issues with the property that make it undesirable, etc. you'll have a hard time getting your 30% discount.  

even if she could get 2,000 a month that still seems like a pretty undesirable return if the house cost ~300k. 

So, run the numbers and you may very well find that you are a bit under funded ... if so, then there would be risk of running out of cash before you can work through the note to recoup your investment, then you may need to sell at an even larger discount or other such undesirable outcomes.

Not to mention, if there's a lock what do you do when an undesirable tenant moves out?  

Unfortunately there aren't too many MHC's in that path but instead in blighted and/or undesirable geographical and socio/economic areas where you don't get the demographics that make it an overwhelming investment opportunity but moreover a better choice for low income affordable housing.Now to answer your question about financing.

I know in TX and other southwestern states there are concerns about stacks of wood, rocks, etc that can attract undesirable animals like snakes.

Do everything you can online to screen out the undesirable and set up your appointments when you visit.