Looks like a good deal, assuming $42K is below retail for the house and there is rental demand.

Is there high demand for housing?

That's the mere definition of "worth" or "value", and the basis of supply and demand.

I'm sure there's tons of potential.I had a couple shots at hoarder type homes and I had to pass, could not see the floor and smelled dead animals.  

Remember that they only have 30 days to investigate and if they can not produce this demand that it be deleted.

This market is a little funky because it stayed flat in 2008-2011 because of strong military demand, then started to decline in 2011 because of force cuts.Thanks for the input.

He has a very demanding full time job.

My goals are to have enough passive income to support me and my family(obviously) and I'd like to have a no-kill sanctuary for animals somewhere between san antonio and austin(they have such a high population of strays that get gassed- in the hundreds of thousands in SA alone) and a multi-family complex in San Diego for single parents/low-income families that would consist of cottages with yards(for the kids to play in- so it would feel as though they live in a SFR not an apartment).

It is also only three blocks from the local technical college and three miles from the local university, so HUGE demand in areas like this.I just looked up the matrix for the zoning as was mentioned in a previous post and I DID find that a sorority or a frat house is permitted under conditional use...

i'm also pretty liberal with pets, farm animals, storage of RVs and related on-site, general use of property is liberal etc. so long as i get the extra deposit.