That your W2 job produces enough income minus your expenses(cash flow).

If their property “could” produce $18k/mo of revenue, they want you to pay as though it already is.

So much hinges on : 1. the quality of the rehab (condition of the house), 2. the quality of the neighborhood (will you be able to attract and retain good tenants), and 3. whether you have really good property management. 

That being said, prices can be attractive.

I can check for more references but am a little nervous to move forward if he is unable to produce license and show worker's comp for his employees. 

With rates the way they are, i would explore a straight up purchase at this point - as long as the property cash flows/meets debt service, there are very attractive options out there - that could be as little as 15% down.   

There are plenty of markets that you can find in-place income at an attractive rate, but your total returns often suffer in those locations.

Do you know of any areas/properties in Virginia, Maryland, DC and Pennsylvania that produce good cash flow?

We're going to be dealing with the social distancing for a while now, until the doctors come up with and start producing a working vaccine, and then we can expect a slow rollout.

--https://www.latimes.com/business/story/2020-03-08/oil-price-war-Oklahoma shale producers break even at $21 to $48 per barrel (i would think its closer to $40 in Oklahoma) -https://oilprice.com/Energy/Energy-General/Why-The-Oklahoma-Shale-Boom-Isnt-Taking-Off.html-Oklahomas state budget is made counting on oil selling for $54 per barrel it is currently at $31 per barrel and dropping - https://kfor.com/news/local/dark-clouds-could-be-on-states-horizon-as-oil-prices-drop-to-30-year-low/-While oklahoma's economy is very diverse it will be hit if prices do not rebound in the near future - https://oklahoman.com/article/5627150/state-chamber-provides-new-analysis-on-oil-gas-industrys-impact-on-oklahomas-economy-and-tax-revenues-Oil and Gas would fall under mining and make up 22% of the GDP for oklahoma see page 11 - https://www.ok.gov/oesc/documents/lmiEconIndPub.pdfThe Good The Bad and The Ugly -Good - oil and gas prices may come up if Russia gives in on this play.