Now, July 2018, three new tenants move in and the city refuses to turn on the electricity in the tenants names because I do not have a business license.

You can’t compare to midwest and mid south areas of USA Cap rates are very similar if you buy in the top school neighborhoods in those cities as well Keep this one for retirement My 0.02 cents

@Scott Bowles , you may want to also talk with the city. 

Just make sure the city has a solid infrastructure and don't invest in small villages where nobody wants to live. 

In order to convert the house into three units it will need at least $ 105k in rehab.I believe a savy investor can turn the current property into three units plus develop the two l0ts and build two duplexes or two single family houses ( arv for the area  2/2 130-140k   3/2  160-185).most houses in the areas are rental properties although is a very convenient area close to all major highways, MLB Statium and 15-20 minute drive to city capital (Atlanta). i would like to wholesale this deal  or possibly partner up on the deal.. 

The city literally hunted the owner down for years and she had multiple liens on the property.

I'm a new investor, starting out in the Twin Cities. 

The Phoenix Metro Area has about 300,000 snowbirds every year with a MAJOR fiscal impact:https://www.bizjournals.com/phoenix/news/2017/07/17/this-country-s-tourists-contribute-2-4-billion-to.htmlSo the county's leadership would have to be absolutely in career suicide mode to push for something like this.

I am looking for a real estate attorney to help me remove a destructive tree in front of my house, which unfortunately is on city property.

Joe if you do go the multi family route check out NBT bank's "Home in the City" Loan.