I am prepared to walk away if that's the prudent decision.FYI, this is for a Buy and Hold, not a flip.Here are the vitals - let me know if I have missed anything:Asking price: $100K (this is an FSBO, I am working with a buyer's agent)Our offer: $90KEstimated Repairs: $5KClosing Costs: < $1K (we are paying cash)All-in: $96KARV: $125KEstimated Rent: $1,050 - $1,150 (but based on rental comps, $1,050 is on the very low end)Property Taxes: $1,178/yrInsurance: $750 - $850/yrThe property is in a great neighborhood with pride of ownership, excellent school district, minutes from shopping, a major state university, etc. 

Good locations near work centers or entertainment districts seem to draw tenants that like one bedrooms. 

This can be found via tax rolls, or on your specific county's appraisal district wesbite.

_r=0Honda makes very favorable financing available to new installation customers thus making your upfront cost zero or near zero.They're offering it to current or previous owners of a Honda or Acura vehicle as well as those who have simply registered on either of their websites: honda.com or acura.com.For now, this offer from Honda is only available in 14 states and those states are Arizona, California, Colorado, Connecticut, Delaware, Hawaii, Maryland, Massachusetts, New York, New Jersey, Oregon, Pennsylvania, Texas, Washington, and the District of Columbia.

Prior to confirming the appointment I checked the MLS and central appraisal district for recent cash buyers in the area.

You can query the information from your local appraisal district for free, or you can purchase lists from List Source (core logic product), amongst others.

This is the book I would recommend to help you identify on what type of real estate you might feel comfortable with as an investment "niche" http://www.amazon.com/Make-Money-Commercial-Real-E...Personally if it was me I would try to keep it  simple and just get 8-10 Single Family Homes in the best school district  I can afford near me.

Has a slate roof in a "historic district", that looks like it might need some repair.

However; in the demographic with kids, I think school schedules still weigh heavy on decisions of purchasing homes, especially if someone is moving into a new district, etc.

viewer=publiccityX short term rental maphttp://sonomacounty.ca.gov/PRMD/Planning/Vacation-Rentals/Exclusion-Combining-District/county sonoma zoninghttp://sonomacounty.ca.gov/PRMD/Planning/Project-Review/Services/Zoning/Zoning/zoning codes explainedhttp://sonomacounty.ca.gov/PRMD/Planning/Project-Review/Services/Zoning/Zoning-Code-Regulations/