@John Clark You are not going to get anywhere close to a 10% unleveraged return on a 1% rule rental.

Either they’re a official property management company which means they’re small and likely not capable of growing since the market is constrained; or they’re an individual who provides super/handyman support, which comes with administrative and people management burdens not worth the time investment.Btw- no offense to any wonderful zainseville property managers out there: the market just doesn’t pass my personal filters to be worth the time investment.Your situation may be different.

If you’re looking for your first single family (SFR) buy and hold property I like to use the 1% rule.

But as somebody in the industry who understands that every state has different rules regarding lien priority and little surprises that only local knowledge would be privy to... 

Thanks for your support. 

I am looking for distressed housing in Philadelphia and I was wondering what is a good rule of thumb when purchasing here. 

Have your new rules in hand upon meeting (as long as they don't contradict with the lease).

Their people are ill-equipped to deal with real estate or private lending, and you will not have the professional support needed.If you do not mind being overwhelmed, here is the (very long) BP list of SDIRA custodians.

They are fairly common once you have built up enough equity.One tax issue that you may want to be aware of (if the commercial property is in an entity like an LLC) is the debt-financed distribution rules. 

Right now the city of St Louis is in support of it but in the county the rules vary with each municipality.