That could easily be a year of holding costs plus thousands or even tens of thousands of dollars in fees just to submit to the city/county.  

(Not by using Google maps because they can easily be outdated pictures) There should be some.

I know that Bicknell is a very small town with a dwindling population(bad signs) but Vincennes is the county seat of Knox County and had a University.

So im looking at a deal and it will easily meet the 2% rule but honestly not sure if house is worth the money but in that case should you still purchase? 

I know that Bicknell is a very small town with a dwindling population(bad signs) but Vincennes is the county seat of Knox County and had a University.

It's completely situational to each person, but if it will cashflow and the profits from a sale can't be easily used on something else that will make you more money it can be a good route to follow.

Two, the natural hard wood floors are protected so if I decide to sell the property in five years, I can just take up the vinyl easily and reveal the hardwood floors for the actual sale.

Their payment is $1,080 and the house would easily bring $1500-1600 per month rent.

Therefore if you can find some deals at wholesale prices you'll easily a find an end-buyer for your property. 

Others get their license so they can pocket that 3% more easily.