I would warn you that Columbia has seen a surge of apartment complexes.  

My only warning about going the just cash flow route is to think about expenses in the future as well, because if you are only earning $1200/yr in cash flow and all the sudden you have to replace your HVAC for $1-2k, there goes your entire years worth of cash flow.The same though could be said about an appreciation play, if you are buying with the goal of appreciation then you are taking a risk that your home will increase in value.

you've been warned".

This would show up on future credit checks, warning a future landlord.

I would warn heavily into thinking one can buy out there and provide a home that looks like the rest of the rentals and not expect to have longer periods of vacancy.

Everybody talks about and warns about the due on sales clause which is in just about every mortgage these days but never in all my years have I or anyone I have heard of had a lender actually excessive that clause so long as the payments were made on time every month.The seller has to be willing to agree to have his or her credit at risk in the event you the purchaser fail to make a payment which is why a third party loan services should be made as part of the contract and serviceing of the loan.That all said, a red flag pops out at me as to why this “gentleman” had this opportunity fall in his lap and wants nothing for it.

He's been working with us for over a year, and has warned us about a few houses before (even recently), so I feel confident that he's not just green lighting this to push a sale through.As far as the property management.

Someone knowledgeable about the market values, market rental values, and bank negotiations/closing.Any advice on my plan below, suggestions, warnings, etc is welcome also.

As I mentioned in my private message response, I must warn you: I'm a big picture and philosophical kind of guy, so my answers will reflect that.

I then get on the phone with the prospect, confirm the info in the application, advise them that I’ll be following up with their current landlord, job, etc (this is in essence me “warning” them of what’s to come - and I meet it, politely, of course.