Here are some info,Purchase price: $160KDownPayment: $40K (25% Down)Closing cost:$5KRepair Cost: $0Expenses:Mortgage payments: $860/Month (Includes P&I, Escrow for insurance & Tax)HOA: $230/MonthIncome:Rent:$1450/MonthMarket was good so no Vacancy this time.

Detroit has this issue right now, but I am unaware of any other market that has insurance restrictions due to high vacancies.

I read a couple of really good thread on this topic but can't find them now...Sorry starting a new thread here just so we can continue the discussion..In the last 2-3 months of looking at MF, I noticed that MF listings ROUTINELY overstate the rent by 20% in addition to showing no vacancy/eviction/turn over etc....

You (or him) need to spend 2-3 days there, hire a new management company, a 2 year vacancy is extremely odd, I would think your Dad is very embarrassed about this, try to dissipate that as much as you can... act now, get new management, evict the bad payers, new new tenants, stabilize, and THEN think about selling.

So for planning purposes I used $1100$0 hoa, $132 management (12%), $110 vacancies (10%), ($110) for repairs (10%), $80 Insurance, $125 Tax-------1100-557543 cash flow6516 per year cash flow if I pay cash. 4.7% ROIWould this be ok to get my feet wet? 

Also, the vacancy issues that @Stefanie Willie-Bonglo could put a dent in your profits should you have to do a lot of repairs. 

Keep in mind you can rent out one parking spot for same or more than $150 per mo in many locations with less vacancies, expenses, liabilities, mortgages, insurance, taxes, management, cap ex, potential losses, no appreciation etc... 

I'm trying to fill a vacancy in a 2 unit and am not getting a very good response.

What level of management will they are they expected to take on; collect rent or oversee that it gets done, unclog toilets or call repair men, renovate the unit upon vacancy or hire someone else?

At this price, the mortgage and insurance would be <$300/mo (if I didn't just buy it cash), leaving $500+/mo minus vacancy, maintenance/repairs, etc. to come out ahead.