I was expecting between 800-1500/year..

I would not expect anything else for his insurer.

Perhaps you could have a real estate agent appraise it and give you an idea of what to expect if you sold it in its current condition and what you could get if you found a way to make the repairs.

I want to start investing in real estate and bring in some cash flow. but there is two options that I need help with. there are two locations one less desirable but still you can find some good houses but alot of choices and the prices on the houses are very low. or go to another location where is more desirable but fewer houses I say like 5 percent compared to 80 percent of houses. but the houses are twice the price . you will get better rents but pay higher mortgage. another thing to add. pricier homes have alot less taxes. as a first time investor not knowing what to expect where should I lean too first. thanks guys for the info in advance.

Also you can say the same thing about BP and everyone is talking about buying rentals.. its the herd mentality and when all these folks started buying in the deep trench after the GFC they expected the 2% rule or more that's where it was spawned.. now its 1% is acceptable and next thing you will know its .05%  etc etc.. the herd is alive and well in buying rental real estate in the US>. and I for one am happy to see it.. if the herd was not buying in many markets those markets would be flatt on their  @$$  and devolving but with all this out of state and out of country investment it saved many many cash flow markets from implosions.. since the organic market in the actual area IE local investors is not sufficient to buy all the homes that are there.. think about that one.. !!! 

You make your money when you buy, etc.If I were to buy a 3 br 2 bth single family in a desirable neighborhood, no repairs needed, traditional financing with a 30yr fixed rate mortgage, would i be making a bad investme...

Nobody is going to be able to tell you if you're making a "bad investment" without knowing the specifics - sale price, nearby comps, expected rent, etc.

They will without hesitation move in their expectant daughter soon to be followed by the dead beat X-con boyfriend.

Outside of that, you can always ask for more, I just don't expect to get more than that.

Thanks @Roberto Torres, im not an AirBnB guy, but that's good to know.Also 1% is to low, I would expect at lease 2% there.