@juan @Juan Maldonadothat is pure gold.

I'm leaning towards being patient with deals rather than pulling the trigger on a C-class neighborhood because I do understand that I'm purely speculating an appreciation in neighborhood/tenant quality.

@Danny Duran  On the tax issue - if you purchase a 3 flat purely as a rental property (not a non-primary residence) you can deduct 100% of mortgage interest, taxes, insurance, building repairs, etc.

If I'm making my margins and getting the income I need to support a lifestyle, that's good enough for me.Again, purely my opinion.

We took them out to drink and hung out with them to get to know them a bit.

We found this deal through pure luck.

Here are my typical requirements for a deal from a purely numerical perspective:Cash on cash: 7%+ average over 5 yearsAnnualized ROI: 25%+plus or minus depending on the location or other factors. 

If it is a pure investment, interest rate may be higher than 3%?

@Raj Gandhi The logic is smart, but doesn't work with a purely passive, single member LLC, rental business. 

One of my tenants said he was smoking a cig and drinking his first beer while sitting at the bottom of the stairs.