@Jeremy MichielsI would make sure they give you a clean title (either they run a title search or you do it if they don't) since it will be off-market and not regulated.Other than that, just be aware of the obvious stuff like don't trust their numbers.  

In the long run it will be more beneficial to you if you save up more capital.  

Also, not sure I would want to hear a 3 year old running around all the time.

I'm not afraid of a big project (though my agent is), I just don't know where to start or how to finance - or if I really should just run away like my agent concluded.

@Mike Hottinga, you don't have to setup an LLC since you're just running this business as a Sole Proprietorship (sounds like you own the property in your name).

Other duplexes that have been rehabbed seem to also run around the 60s - 70s. 

After having a couple of different banks run the numbers, the best I can do is a cash out refinance on the two properties with the most equity.This would allow me to pocket ~$45k and increase the combined payment by $136 per month.

There's definitely areas and streets that have run down homes and my goal is to purchase them and fix them up and make them into QUALITY rentals.

My son has been driving and looking around he seems to like the area of North Highlands and around Spy Run?  

Your interest rate at 4% is a bit low (I just got an OO at 4.125, investor deals are 4.5+ish) If you run vacany and repairs to 10%, an increase the rate, you are looking at about $600 profit,  or $300 for your investor, or 3.6% which won't fly.Overall, the numbers look marginal, and if you take a unit, you will be paying for that unit, probably around 1500-1700 to make it break even.As an appreciation play, maybe, but you don't specify where the property is, so it's hard to judge.Not saying no, just it looks tough to put together.Just my $0.02Good luck,Jim