@Brandon Turner  You probably already know this, but I'd recommend you stay away from leasehold - the value actually declines as you get closer to the land lease renewal date. 

I could actually see this idea working well closer to the city.  

Being that this is my first deal I probably should have paid a little bit closer attention.  

Property has had $4000 for tenant make ready when I got it last year1 unit had new floors installed in the bathroom recently-around $1000Property is free and clear Asking Price $30,000No work needed and all 3 units are fully rentedMy lender rates are 5% interest rate and loan is to be paid back in 4 years. loan-$30,0004 year interest rate-$6,000total loan-$36,000Monthly Payment-$750Total Monthly Income-$1515$1515-85.00(insurance)-$30(grass)-$151(management fees)-$150(utilities)=$349 Cashflowis that a good deal or is it not worth the time and effort??

My point is, if you get it closer to a cash flowing property, it does not necessarily NEED to meet the 50% rule, which is arguably the most arbitrary rule used here.

Have you considered lower priced areas, that are closer to your home?

And this is why, even though I live in Manhattan, I would never own any rental property closer then Pennsylvania.  

Then we will 1031 for a propert closer to us.

Overall he felt the rental market was stronger closer to Richmond than Ft.

I also in the DC area and invest a bit in the NC market, though closer to Charlotte.