ok so NO I DO NOT think you should consider buying this home.... first of all i think your numbers are off, insurance on $500K home is way more than $50 a month...also you will need 20% ($90,000) for down payment if purchase price is 450,000......then you also need to consider other expenses like vacancy, repairs, property management (even if you self manage)..... as your first deal this is way too much risk for negative cash flow and the hopes of appreciation........if its still sitting on the market, then its over priced....... an appreciation play is not a smart first investment IMO

The drywall and carpet needs to be replaced (at a minimum).We were carrying force-placed insurance.

C class is very high risk and management intensive. $3200 rent on a 300K C class property is way too low.

Does anyone know if you can complete a 1031 exchange if you sell a property but carry back a small second mortgage?

C can come with higher cash flow for certain periods but it can also come with increased risk & potential downside loss.

I am a big fan of this "value add" investing strategy, but everyone has a different risk profile. 

The theory was this would limit risk and lead to higher quality, longer term tenants that would be less likely to give me headaches. 

I would only do business with folks who carry high limit E&O and who guarantee that their work can be relied upon for the purpose it was obtained. 

Or he could pimp women out of it.Every tenant carries risks, even the perfect tenant.

I also want to to start investing with my brother and father we are about to close on our first deal. we figured between the 3 of us we can save up for down payments faster and spread the risk as well.