We currently have one rental property that is fully paid off, generating $2,150 per month in income, with expenses around $1,000.

We are just getting going..and my only experience is with buying my current and past primary residences! 

For starters, where are you located and how is your local market? 

38127The median household income for 38127 is $35k, which is near the bottom of the US. 

You don't want to decide how the end user will use it so you have your price for the real estate and land, and the rest is negotiable.

Hi Jesika,@Jesika IbarraWelcome to the forum, there is a wealth of knowledge on BP.

There is a way to leverage losses from a rental property that you are actively participating in managing + you need to meet a few more criteria too lengthy to break down here in the forum post - to be clear, this isn't what you described (e.g. 

I see someone above said the Indy housing authority is pretty good, so that's a plus.

I would double check all this, but my understanding is as follows:The property owner is still responsible for repaying the mortgage, even after condemnation. 

Nice that your first property is a 6-unit.