Then they make a **** load of money on them, and still collect on loans  which they never make (plus interest). 

any pro forma that shows you 'cash flow' on day 1 or in month 1 or even year 1 is a joke.here's the bottom line. 

Which will also depend on the neighborhood.You want to, "rehab/maintain to the Neighborhood".Most investors go overboard on their first rehab and waste a decent amount of money.

The 10-year treasury is currently sitting at 4.62% as of 1/24/2025 up from 3.73% on 9/13/2024, reflecting a 23.8% increase over the last 4 months (Source).

Any advise is greatly appreciated on the subject! 

Or are taxes one of the things that is line on the spreadsheet that just has to make sense in regards to the overall deal? 

G'Day Alejandro,As a few have already mentioned, take a peak at Toledo also.In my opinion lower potential for long term appreciation but solid/"boring" cashflow.I prefer my portfolio to be "boring" but cashflowing lolLow entry points (Sub $100,000), high rents (Above the 1% rule).Blue collar working class decent folks that will stay and pay.Depending on the area but no derelict homes, yards well kept, cars with wheels and all tenants are employed.Plus, all are sophisticated enough to pay rent online so property management doesn't have to collect rents with bullet proof vests and shot guns lolI'm bias toward Toledo but it's worth considering.Wishing you much success

Is this ultimately a land play? 

I'd love to talk and get you an offer on it!

I think it would be better just to stay on good terms and let him know you will contact him when you are ready to sell.