At the time it seemed like prices still had to drop more before there would be a sellers market.

It is set up so the landlord pays heat and water, tennant pays electric.

I can see values dropping a bunch but for the cash flow rent rates to drop by 40% something drastic had to happen in the area.Either your property was in nice shape and now it is trashed and instead of pouring more money in you have reduced rents over time OR the area has been hit with massive foreclosures and new purchasers reduced rental rates to rent up fast.I like the idea of the local investor to take it on.I never buy 2/2's unless it's apartment buildings.For resale 2/2's are really hard and do not hold value as well as 3/2's.Some areas it might make sense but not for me.

I always prefer referrals and the name drop usually helps start the conversation off right.

The one on your drop-down is this one:Bad Link

At the end of the day, go with your gut.PS - the water heater is over 30 years old!

Each has had work done inside on bathrooms, floors, water heaters, HVAC.

Without financing values drop like a rock.

For example, replacing the roof and HVAC every 20 years, replacing the hot water heater every 8-10 years, etc.Also, you're ignoring the turnover costs you'll face when tenants leave (painting, replacing worn flooring, etc).

The interest rate will be higher but if you run into a cash-flow problem you can drop down to the 30yr amortization.