I have family in Kansas City/Leavenworth, Memphis, and South Bend/Elkhart, so these areas would interest me the most, but I'm really open to anything right now (Des Moines and surrounding cities like Ames and Iowa City come to mind).I've never flipped a home, but I've built two custom homes (that were my primary residences) with a GC and have performed most construction/finishing tasks (e.g. framing, HVAC, electrical, plumbing, trimming, painting, etc) on my basements.

One of my friends had a plumbing problem at the same time I did. 

Good afternoon everyone,My dilemma: Contemplating Purchasing first 2-family home. 3br lower 2br upper Pros: - Location, in the heart of town- Tenant paying $1500 for 3br and wants to stay (been there four years)- Water heaters, Furnaces newer with separate meters for each unit- Natural Gas - 2 Car garage - Corner Lot- .24 acres- Based in rentometer.com 3br rent for $1700 on average and 2br $1550 on average for its location- 3BR has one and half baths- Laundry hookups both units - FHA Loan, less down payment- Owner occupied (id live on the top floor while renovating)- Foundation is solidCons:- 2BR needs a complete renovation to the studs- 3BR needs renovation but nothing right away (tenant is happy as of now)- Leak from fireplace/roof which is ongoing- Taxes are $4500- Price listed at 360k- Comps have sold around 330k, but don't have the garage or location- No cash flow until I were to be done renovating and buy another- Some plumbing neededI got a CAP Rate at around 8.5% with it being sold at 360.

When we performed our due diligence on the property we knew we were going to do something with it and that "something" would include the tenant paying their water bill.These units were taken down to their studs and all insulation electrical and plumbing was replaced.When the piping was replaced we used that opportunity to install a sub-meter water meter.

Distress could be structural issues, code violations, issues with major electrical or plumbing systems, major roof issues, etc.

I would advise though you save the threats on not paying rent for a last step when it is something like heat or plumbing.

Details...for example, (If plumbing breaks you will be responsible to go out and fix it or hire someone).  

I have 15 years of HVAC experience as well as electrical and plumbing.   

I do my best to keep an eye on them as much as possible.Also, I still do some hands on, when we had our Houston freeze all the plumbers jacked up their prices and were very busy, so I had to do some plumbing (pic attached) I had to replace all the PVC in the pic.

Inside, plumbing, electricity are just rehabbed and outside is pretty decent in my eyes.