It's net income is a loss due to high turnover costs, management fees, etc. 

If true, definitely doesn't lower the price tag on a good professional agent, and even if it did, they would make up for it in the ability to generate new upfront fees.

So besides penciling income/expenses and profit/loss, I would also be looking for comparable sales to justify your purchase price. 

When working out the money side, remember this formula: Cash on Cash Return = (Annual Rental Income - Annual Expenses (including HELOC interest)) / Total Cash InvestmentExample:HELOC Used for Down Payment: $50,000HELOC Interest Rate: 6% (This can vary)Annual HELOC Interest Expense: $50,000 x 6% = $3,000

If there are no issues he's gonna come out looking great and probably generate a ton of leads off the attention this thread gets.

It's capable of generating approximately $200 per month in positive cash flow if rented out.

You cant not garnish social service income.

Better income, less turnover, and less government intervention is my kind of business :)

It's relatively affordable, strong tech and industrial job growth, landlord friendly, low property taxes, and not state income tax. 

Doesn't sound like they are truly generating value for you then.