The area is seeing a surge in new condo and town home construction so clearly there are investors who have put there money in the neighborhood.

Anything that has room to add value, gets me my own space while continuing to bring in that passive income, and is located in a safe neighborhood will work. 

Other rentals in this neighborhood go in the $2,500-2,750 range, so it should provide positive cash flow of $600+/moHere is my new idea of an offer to her:-$150k sale price-I assume the mortgage of $1,250/mo-10% down payment of $15k so she can buy a new place-I pay her 3% realtor fees at the current listing price $6kish-So, my all in costs would be $61k (reno, downpayment, realtor fees)-Even if I sold the property, I'm showing a profit of $10-15k if her mortgage is in the $160,000 rangeMy question is this: What am I missing, and does this deal seem like a lemon to you? 

Deal 1: 4/2/2 SFR Nice quiet neighborhood, easy rental or owner finance area, low DOMPurchase Price: $115kAs-is: $115kRental ARV: $150kRepairs:$12k....0$ if the current tenants stay which they plan to do and have been there 7 years (I hope to wrap and OF to them)Flip ARV: $160Repairs: $20kRent: $1200 current, $1450 marketTaxes: $4000Seller will carry 25% = down payment on conventional loan.Deal 2: 3/1.5/1 Garden Style Townhome, possible section 8 rentalPurchase Price: $95kAs-is: $95kRental ARV: $110kRepairs:$20kFlip ARV: $130kRepairs: $30kRent: $1495 top of marketTaxes: $3300Seller will carry 25% = down payment on conventional loan.

Can anyone take a quick peek at the map below and identify if any of these properties are in C+ to B neighborhoods?

He also presumably lives in an A neighborhood.

The "Hot/Up and Coming Neighborhoods" like Point Breeze and Brewerytown have quickly become over inflated with the resale value, often times from wholesalers selling to wholesalers who then eventually sell it to an investor.  

Great neighborhood in an HOA with community center in a desirable area.

@Jarrod Kohl To your second question, no I believe it was priced accordingly to the neighborhood.

One is a 60 unit b class property in Ft Worth TX. 80's build, townhouse style property in a nice old money neighborhood of town and close to a medical school.