It's not just the cap rate, but location, credit of the tenant, lease abstract conditions, any restrictive uses that run with the deed,etc. 

Just felt like if I wasn't going to be local, I didn't want a property in that condition.

How valuable is using social media. 

You can certainly borrow money from your 401(k) in this fashion....if your 401(k) would allow it (your plan administrator or the plan "terms and conditions" would be able to tell you). 

It's only listed on the HUD/CD/etc if it is a condition of the sale type of thing. 

Additionally, looking at the expenses you budgeted for, you left off CapX, which is typically something that you want to set at about 10% of monthly rent (depending on the age/condition of the property).

When we left the place was in excellent condition, but needed cleaning.

The W Washington Street area is kind of rough and most houses are in poor condition.

I knew the neighborhood well and had inside knowledge about the condition in which it was left in.

Know your local water conditions and install a water softener if necessary.