Some people only want new properties in nicer areas to lessen the headache factor others are willing to chase higher returns by getting cheaper properties.

All that being said I think my main concern is the boots on the ground factor and trustworthy.

There are lots of factors to this equation and the most significant one is what market you choose to invest in?

I have the money to pay it down to 80% I just do not want to put it into my primary resident becuase ideally my goal for 2014 is to purchase my first inbvestment property.

Ideally she would pony up the new SD and you would return the apartment SD per your state laws.

@Ollie Gray IV - ideally, if you can secure a low interest, fixed APR, loan on a property in a good area - you will never sell it...

If you are at the point in your investing career that you are ready to do a flip I would imagine you have a pretty good handle on what your holding costs will be exactly and you can start factoring that in to the equation but 70% will be an extremely difficult benchmark to hit.

Interesting side notes-1) the two current tenants are longterm 4+ years, but are also not clean and tidy at all.2) there are several very nice houses in this neighborhood, but the one next door is condemned (in tax default), and a house a couple blocks over has been destroyed completely by fire.3) Comps of SF and MF homes are all over the place in the area and it's pretty much impossible to get comps on this type of unit even going back 2 years.Any suggestions on how I should factor the current tenants, neighborhood, comps or empty unit potential???

That is a great set of scenarios and ideally a rehab to buy and hold is the goal.

What are the biggest factors in a vibrant REI?