I do not see any attorney or CPA wanting to take that risk. 

Now how much work, hussle, sacrifice, risk are you willing to take to get the (nicer) house, (nicer) car, (better ability to) take care of family, (more) time/money to take vacations, etc?

Your rent seems low and a good property manager should be able to raise the rent value to compensate the cost of having a property manager and also lower your risk of having bad tenants.Overall, look at the entire deal and cost in to work your numbers.

Then again the only comp I could find for this went for less than this place.I'm on the fence with this place...If I could get a 50K price reduction from inspection, I'd be more likely to go for it, but as it is, it seems like lower end tenants with attitude, no cash flow, and a lot of risk.

From a selfish point of view I teach people the hard truth about real estate. i don't want to compete against newbies that don't understand the risks they are taking, and the hidden cost they are ignoring. 

@Kelly Iannone  & @Amy Beth - Following Dave Ramsey's principles got us into the habit of carrying cash. 

Higher returns typically come with higher risks.  12% on a rental property will probably be in lower quality neighborhoods, like B- or C, and most savvy investors will sharpen their stick enough to start poking holes in how that 12% shakes out.  

That being said, there are still good deals out there depending on your level of experience and risk tolerance.

Then, I would evaluate my financial position and see what the best way of getting started would be (in terms of property cost, risk, etc...).

I would only use the formula for small, severely distressed, negative current NOI deals with big upside.  65% simply reduces my risk.