I also know the owners really don't have the time needed to fix it up and rent it out due to health problems of one of the owners.

If it is so old and rundown that it causes a health or safety hazard, you would have an argument, but if it just looks outdated you likely have no leg to stand on, legally, since you rent a property in as-is condition.

We rent to a variety of people, from all aspects of the socio-economic spectrum.

If you choose to invest in a new market out of state, you need to do research based on the location you choose, big criteria like economic condition, population, rent and price ratio, taxes and employment situation, and you should not ignore small criteria, like safety and crime rate, public transportation, neighborhood, environment and weather.

We have a built in cushion for absorbing an economic downturn.  

CA or NY) vs the state they are investing in (interior states), which creates an economic advantage.

Economic occupancy vs Physical occupancy Termite policy Yard care Utilities?

The main arguements against stocks are the lack of control you have over the companies in your portfolio and their ability to lose a significant amount of their value in major economic downturns.

LTV - I’m indifferent on having equity, however, if I would of originated the note I would of looked to have at least a few thousand dollars as a DP for the homeowner to have some skin in the gameRate - 8 - 12%Term - Longer than 15 years and at time of acquisition no more than half of the way throughAs-is Value - greater than 50kMortgage PMT - greater than $400/monthLocation - In a populated city of 20,000 people or greater along with strong economics. 

Marysville is a pretty solid sub-market...good economics with Scott's and Honda.