Being a surfer for decades I have followed the weather closely for decades.

You may wonder why the hell we offered so much.First, a three bedroom unit in good (but not great) condition in this complex just sold for $171,500.  

@Jay Hinrichs Hey we're not seeing that same thing after testing it under your user conditions...

However the general economy of the Allentown area seems a bit stronger, but houses in the same condition there cost a good bit more.I'd be hiring a property management company most likely, since I'm not local and this would be my first property, so this is going to be a big learning experience for me.If anyone has any thoughts, I'd love to hear them!

Any depreciation deductions you took on previous tax returns (or were allowed to take, weather you took the deductions or not) will have to be recaptured (included as income) before figuring the capital gains tax or tax exclusion.

We bought the property (in great condition!)

Have you figured out what it's going to cost to get it in rentable condition?  

@Julie Macd to answer some of your questions, I work with 100% passive investors and they are earning anywhere from 8-12% cash on cash in Everett  depending on the age and condition of the property.

The condition of the house is pretty bad, ceilings are really low (i am 5'10), floor seems uneven,  entire house needs new flooring, new bathroom, kitchen, patio deck is warped.

Also, let’s say I find a deal that may look interesting (by looking at the physical condition of the property), how do I figure out the costs such as insuranse, garbage/sewer, water etc?