So actually, the seller made a nice $5000 extra. 

A friend of mine that I work with is the one who originally turned me on to REI as a source of extra income, and earlier this year I bought my first duplex with an FHA loan.

They need a 2.5X income to rent ratio and must show me a monthly expense budget that leaves $200/mo. extra in savings for emergencies.

Why not rent out the extra bedroom you have now?

I just needed some extra re-assurance while I'm looking for property again!

@Marc Woodward...burn it down...just sayin'alternatively, get it repaired enough to rent to a tenant that covers your mortgage payment....sit on it an do repairs as you can...should be a sweet equity position in 10-years!

Either have quality from afar or run a more problem property locally for increased cash flow yield.Constant traveling far away to a lower class asset on continual basis will suck away a lot of your time and cash and you have to build that in to see if the extra risk is worth it for the upside.Investors like to keep problem properties close to home and re-cycle capital.

Just be aware that every extra daisy in the daisy-chain means: less profit to go around.

Never know, they might not do much but might give you an extra 500$ toward that problem.

I am also from San Diego and would love to go back a few years and buy some extra properties.