Their value went down, then it went back up to par, and now they have had 10 years of debt reduction on that loan to build 10 years of equity. 

@Marc Izquierdo - I do a lot of investing and PMing in low income neighborhoods and I will tell you that just being in a low income neighborhood will result in tenants that are hard on buildings, irregardless of how the rent gets paid.  

For rentals, although the risk of getting FC'd is low, you should always have an exit strategy to prevent a loss.

Hi @Sam Hanaa, yes, that is correct, but many are absolute disasters (ie, can't be cost-effectively brought back up to snuff), or they are being advertised at a low price with an offer presentation date.I agree that there some more opportunities than a year or two ago!

Fishtown is a cool little town with rents in the high $1k to low $2k.

I'm not as experienced as most here but to me your expenses look too low, 3% vacancy and 1% CapEx especially.

The After Repair Value seems really low.

I wouldn't bother with flowers or cards or rent reductions because these types of people are unlikely to appreciate it and more likely to see you as a sheep to take advantage of.

@Keith HebertYou ‘ve gotten alot of good advice on here, my advice is pay top dollar for high value/low frequency tasks and look at outsourcing your low value high frequency tasks.Pay a CPA to do your taxes and review your books on a quarterly or annual basis-get a bookeeper (there is alot of good 3rd party bookeeping services that work remote) have them do all the data entry/recs and set up checks so all you have to do is print and sign them.

That low down-payment and rate is too enticing for us to simply start looking for private/hard money if there's another option out there.