Dave,Congratulations, you've done well and exited a marked handsomely.While an overall ROI of 12 - 15% is solid, I still contend that CAP rates are meaningless in the context of residential properties as that is not how they are bought, sold or valued.  

I still contend that if you can cash flow and still benefit from paying off principal each month, which is not an issue even at these elevated numbers, then move forward aggressively.  

Jim from the minute i filed bankruptcy I have been rebuilding my credit or as you put it "getting my financial house in order" I started an L.L.C. as an alternative to my personal credit, and to also establish myself as an serious contender in the real estate market.

In my opinion, a bad joke on the part of Norristown to call run down blocks historic and force people that actually intend to improve properties to conform to make believe aesthetic preservation.I do contend that it is still possible to make Norristown work if you find a good enough deal. 

I would look at the 80 responses you got & see who is a real contender (skip anyone who claims to be out of the country, but who promise to "send a check immediately" LOL).

I still contend this is, at best, unethical on the part of the investor.

Many simply cannot afford to work that long for that little. the advice about going to the listing agent is a good one. that way they are double ending the deal.And in all markets there are the local pro's and thats one thing newbies have to contend with..

I have three leading contenders.  

Obviously you aren't putting stainless/granite in the lower end rentals, but still, even assuming good mechanicals, a new kitchen, bath, misc. repairs, still has to be expensive, especially if there is lead paint to contend with.

- The 203K loan doesn't come with a prepay---the homeowner can opt to do a FHA "streamline refinance" after rehab/renovation is complete to take advantage of better interest rates/lower monthly payment (A FHA streamline refinance doesn't require the verification of income/assets again nor does it require a new appraisal).Hope this helps---I offer the other 1 loan and 2 loan alternatives (that require a min. of 5% down payment), but I still believe that the 203K loan is a strong contender for someone in your stated circumstances (good credit/no money).