And that some will disagree with as well."1% rule" = monthly rent should be at least 1% of acquisition costs; for some, acquisition costs include all purchase related costs PLUS any repairs / improvements needed immediately upon purchase."2% rule" = monthly rent should be at least 2% of acquisition costs; this rule applies more so for lower rent amounts, roughly $500 (and lower), and can be difficult to meet this rule at higher rent amounts.

Mainly I mean that he was terrible to deal with through his tenancy, and gave me grief every chance he got.  

Your P & I would be lower resulting in improved Cash Flow.3. 

The more creative you are, the better chance of success. 

Has anyone heard of or tried using the REEL program to fund any improvements on properties?

I would save up the couple hundred a month and use it to improve both units in a year or 2.

Do we have to the give the tenant a chance to correct the violations of the lease. 

Then protest the value every chance you can to keep them as low as possible.

Rather, your wealth accumulation can come about by buying under market to begin with, in areas that should keep improving in value, and which are then 100% paid off by your tenants!

I know that appreciation is a gamble, but if a city's economy is diversified and there is a finite amount of land in the prime location that is downtown/waterfront then chances are it should appreciate, right?