Small investment on your part to do a bit of painting and carpet cleaning could very likely increase the perceived value quite a bit.

If you don't know your market, then not only is it more complicated, it is increasingly risky.

If there is potential to increase he rent or your loan basis is significantly less then your cash flow will improve.Property # 2.

By my figures the rent amount he charges himself increases the valuation of the of the property by 35 to 40 grand.  

Now, I'm working on expanding my portfolio in Virginia, and increasing my marketing through a website.

The property needed a lot of love and upgrades, and slowly over the last 2 years I’ve done multiple remodeled and a ton of work, BUT My net monthly income is now 1100 and I’ve increased the value of the property by 200k.

My very first purchase from 10 years ago is the perfect example; while great in cashflow (actually $250 in rent increase per door) has not appreciated at all.

I cannot stress enough that reading a lot is going to give you the knowledge you need and more confidence when it is time to execute.

Lots of deferred maintenance, but I'm confident could cash flow for many years. 

So I would think this is only an acceptable investment property if you either have a value add (you did not indicate a value add), are very confident of market appreciation (I am not at this point), or are vary confident of rent appreciation.I would not purchase it as a potential rental.