So, also I am not investing in Non-Performing notes and would like to grow more in this market. 

@German Hernandez it all depends on your goals and how the investment is performing.

Background, credit and all other checks are being performed now for the daughter, will know the results soon.Thank you

I feel that my formal education has helped me in many ways such as understanding how to read and analyze financial statements, performing cash flow projections, and understanding metrics that affect risk and returns.

First, see Sch-C vs Sch-E.Second, the appraisal is not performed based upon EITHER schedule.However, the GSI-Expense = projected NOI, times 0.37 is actual NOI and that has to cover the mortgage+interest, insurance and taxes.The high vacancy rate (1.00 - 0.37 = 0.63) is a killer and usually, you would take such a loss ONLY because you would be year long resident AND love the life style - - aka it's typically a bad 'investment' and you're making this choice for OTHER than financial gain.

Don't baby sit and set the bar where you EXPECT the tenants to perform. 

A typical pool costs $75,000 to install, but no buyer will pay your extra $75,000 when they buy your house.The sport court: This multipurpose area for tennis matches and basketball is seen as a huge patch of asphalt where the beautiful yard should have been.Fruit trees: Your fragrant orchard is a magnet for rotting fruit and the flies that feed on it, and calls for constant pruning.Built-in fire pit: This barbecue haven for alpha males is seen as a stone monstrosity.

To be perfectly honest I did these investments more for sport but at this point I have to finances to really get serious.

In those instances, your new floor will usually not perform well over time because it doesn't have a good base. 

He breaks down in great detail the things you want to think about and the analysis you need to perform.