Based on what you've said here, I'd probably rent it out as-is for a couple years and then 1031 in to a higher quality area. 

@Jason Seay, if they're married the deposit is a marital asset. 

I got bit a couple years ago and went from a 6% rate to almost 10% rate.

There are at least a couple factors at play.  

My name is Taylor, I'm 18 and want to become a real estate investor in the next couple years. 

I used to be a landlord and flipper in New Zealand until a couple of years ago when I liquidated my portfolio and moved out here to Pittsburgh.

Thanks Dennis, I think you're right that planning for a more conservative return would be a good idea.I re-ran my numbers at an even more conservative level:Lower ARV: $800,000Lower income levels (I'm assuming it will take a couple years to get up to full potential income, but giving myself 3 years was a conservative estimate):Year 1: 50k (NOI $1,000)Year 2: 80k (NOI $31,000)Year 3: 100k (NOI $51,000)My ROI numbers come out to:1% (year 1) 46% (year 2) 76% (year 3)This scenario seems like an acceptable risk to me, when the upside seems far more profitable.

Recognize there are challenges doing BRRRRs since the rate increases that have occurred in the last couple years

We have over 10,000 landlords in Milwaukee and at least a couple thousand active investors at any point in time.6.)

Bought a house that sat vacant for a while and renovated it over the course of a couple years.