In your experiences, does that generally mean it's a bad location or that there is good potential?

I don't think your exposure is that bad on interest rates, because you would likely be refinancing at the 6 month mark.Your biggest risk imo is did you get the rental income you expected, and did the property appraise for what you thought it would after you financed it. 

The pest control guy said the infestation is very bad and looks like it's been going on for a while. 

Now is the time to begin insulating yourself against bad times and down turns. 

If you are looking to scale quickly - even tho this is your first deal - having 80% in the deal is never a bad thing - have your guidelines but sometimes you can’t always get it exactly where you want.

Bad condition, moldering walls, built in 1860.

I carry just enough insurance to get the bank out of the way if something really bad happens. 

It's older so needs constant work and problems.The 200k property instead of the bad parts of Atlanta the quality areas you spend more but tend to get better rent growth over time and equity growth.

This was in the mid 2000's.Past experience was over construction, bad economy and the class A started giving away the farm to avoid losing the farm and all property rents dropped significantly. 

James:Yes, I'm sure area and rents will figure into the equation as well ... and bad spots in Detroit may be a little tougher than our bad spots.